888 Holdings Out on U.S. Sports Betting Scene?

British-based global sports betting giant 888 Holdings seems to be considering leaving the competitive U.S. market due to high operational costs, fierce competition, and low profit margins. Those looking for alternative betting options should explore our top sportsbooks.

The collapse of Sports Illustrated and its sports gambling platform, which 888 Holdings signed a seemingly secure and game-changing partnership with, is certainly detrimental.

Per Widerström, CEO of 888, stated on Monday that while SI Casino has experienced a series of record-breaking months, the company has determined that reaching the necessary scale in the U.S. market to generate positive returns quickly is unlikely.

888 Holdings, as stated by company executives, will be exploring potential alternatives to enhance the value of the business.

What 888 could be giving up

888 is currently operating in several key states in the American market, with its sports betting product available in Colorado, Michigan, New Jersey, and Virginia. However, only New Jersey features a branded 888 sports betting product.

888 has been providing the technology for SI Underscoreg in multiple states where sports betting is legal since partnering with Sports Illustrated and Authentic Brands in 2021.

888’s termination of their partnership with Authentic Brands will result in a $25 million cash loss for the company, as well as an additional $25 million payment in 2027.

The competition factor

Since the 2018 Supreme Court decision to overturn the blanket ban on sports betting, the legal sports betting industry in the U.S. has experienced significant growth.

The high promotional expenses, such as duties, market access fees, and licensing fees required to attract new customers to a specific brand, have been a major factor in 888’s decision to end its partnership with Sports Illustrated and potentially withdraw from the American market.

“As CEO, my primary focus has been on preparing the Group for future value creation,” stated CEO Widerström. “In the U.S., the competitive landscape and need for scale necessitate significant investments to achieve profitability.”

Not dead yet

888 Holdings has announced its plans to leave the American market, but has not completely abandoned the industry. The company is conducting a “strategic review” of its operations in the United States.

Widerström confirms that the strategic review of our US B2C operations will proceed as planned, and shareholders can expect an update on our plans for the wider Group by late March.

This indicates that the brand’s future in America is uncertain. 888 Holdings may decide to either continue operating at its current level in America or sell assets to focus on European markets, which include 888 sportsbooks and William Hill, another top-tier European bookmaker owned by 888.

A press release from 888 Holdings stated that there is no guarantee on the results or outcome of the review.