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(Alliance News) - 888 Holdings PLC on Wednesday said that it has launched a strategic review of its business-to-consumer operations in the US and is considering a sale of that business as part of the process.
The Gibraltar-based betting operator, which owns the William Hill and Mr Green brands, said that it is considering all value-adding opportunities, including selling the US business or a controlled exit of US business-to-consumer operations.
888 currently operates in four states, with SI Sportsbook and SI Casino in Michigan, SI Sportsbook in Colorado and Virginia, and 888casino in New Jersey.
It explained that gross profit margin has been lower in the US than in the rest of the group, as a result of the costs of operating in the market, including duties, market access fees, and licence fees. It also noted the impact of "intense competition" from incumbent participants.
As a result of the review, 888 Holdings has ended its partnership with Authentic Brands Group LLC, which had granted 888 exclusive use of the Sports Illustrated magazine brand for online betting and gaming.
888 has agreed to pay a Authentic Brands a fee of USD25 million immediately to end their agreement, as well as an extra USD25 million between 2027 and 2029. Ending the Sports Illustrated deal is expected to save 888 operating costs of between USD6 million and USD7 million per year in 2024 and 2025.
There is no set timetable for when the strategic review will be completed. 888's business-to-business operations in the US remain unaffected by the review.
888 shares were trading 1.0% higher at 85.71 pence each in London on Wednesday morning. The stock is up 17% over the past year.
By Holly Beveridge, Alliance News reporter
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