UPDATE 2-Online betting firm 888 says revenues fell after UK reopening

* UK avg. daily sales 20% lower since May 17 vs earlier in
2021

* June-qtr sales rise 10%, but Poker and Bingo revenues
lower

* Expects FY adjusted EBITDA to be 'slightly ahead' of last
year

* Shares fall as much as 5%, among biggest pct losers on
FTSE 250
(Writes through with detail on restrictions, shares,
background)

By Pushkala Aripaka

July 7 (Reuters) - British online betting firm 888
on Wednesday signalled that a reopening of outdoor venues after
coronavirus lockdowns was hurting daily revenues in the country,
as people spend less time indoors and online.

Shares in the London-listed firm fell as much as 5% to 392
pence in morning trading as investors looked past news that 888
now expects annual profit to be "slightly ahead" of last year
and focused instead on a recent dip in revenues in the United
Kingdom.

Since May 17, when British retail and leisure spaces
reopened to customers, 888's average daily revenues in the UK -
its single largest market - had been around 20% lower than
revenues earlier in 2021.

888 also said Poker and Bingo revenues fell year-over-year
in the quarter ended June 30.

Overall, its June-quarter revenue jumped 10% to $257 million
at constant currency rates.

"The strong momentum from the first quarter of 2021
continued into the second quarter, albeit with the year-on-year
growth rate moderating in light of stronger comparables from the
prior year," 888 Chief Executive Itai Pazner said.

British Prime Minister Boris Johnson has set out a plan to
end COVID restrictions on July 19, which could further hurt the
online betting industry as people go outdoors and screen-time
dips.

Still, the easing of pandemic-related restrictions has also
brought back sporting events, a positive for 888 and rivals such
as Entain and Rank Group.

888 is investing more in developing its betting platforms
and on marketing to woo more customers. It partnered last month
with Sports Illustrated to support its U.S. expansion.

888 had performed well in a "potentially tricky" quarter,
Peel Hunt analysts said, adding they were confident that the
company would benefit from its overseas expansion plans.

888 is set to report interim results on Sept. 1.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by
Shailesh Kuber, Shounak Dasgupta and Carmel Crimmins)