As part of this strategic process, 888 will consider all potential alternatives that can deliver value for the business, including the sale – in whole or in part – of the group’s US B2C business, the controlled exit of US B2C operations or other possible strategic transactions.

888 is active in four US states – SI Sportsbook and SI Casino in Michigan, SI Sportsbook in Colorado and Virginia, as well as 888casino in New Jersey. 

The group is conducting a US operation strategic review because of a “lower than the group level” gross profit margin in the US due to “significant direct costs of operating in the market including duties, market access fees and licence fees”, as well as “intense competition from well-capitalised incumbent participants”. 

888 noted that it does not believe that its current structure will optimise returns.

In addition, as a result of the strategic review and the above evaluation, the group will be mutually parting ways and ending its partnership with Authentic Brands Group, which had granted 888 the exclusive use of the Sports Illustrated brand for online betting and gaming.

As part of the termination, 888 has agreed to a $25m fee, to be paid in cash from available resources, as well as an additional $25m between 2027 and 2029. 

The group stated that the termination of the Authentic Brands Group deal is expected to result in approximately $6m to $7m operating cost savings per year in 2024 and 2025.

Per Widerström, CEO of 888, commented: “Since commencing my role as CEO I have been focused on ensuring the group is set up to deliver strong value creation in the coming years. In the US, the intensity of competition and requirement for scale means huge investment is required to reach profitability.

“Our partnership with Authentic has consistently driven strong demand for the SI brand across both consumer experiences and product offerings. A series of record-breaking months for SI Casino has underscored the strength of the SI brand.

“However, despite these successes, we have concluded that achieving sufficient scale in the US market to generate positive returns within an accelerated timeframe is unlikely.

“The strategic review of our US B2C operations will continue at pace, and I look forward to updating shareholders on our plans for the wider group in late March.”

No timetable has been set by 888 for the completion of the strategic review. The group added that “there can be no assurance regarding the results or outcome of the review” and that its existing US B2B arrangements are unaffected.

888 isn’t the only operator to announce a significant change to its US operations over the past couple of months. Last November, following its own strategic review, Kindred Group stated that it would be fully exiting the North American market by the end of the second quarter of 2024, subject to the regulatory process.

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888 and Authentic Brands Group first aligned in June 2021 with a view to utilising the well known media brand to capitalise on the opportunities presented by the US’ online sports betting space.

Subsequently, the retail ecosystem has been targeted, with OpenBet selected as the partner of choice to support this journey.

Howard Mittman, US President at 888, noted: “Our alliance with OpenBet to power Sports Illustrated Sportsbook, celebrated with this launch, paints a promising future for the retail betting landscape in Michigan.   

“As we stand on the cusp of this exciting new chapter, our collective vision and expertise are set to redefine customer experiences.”  

The operator’s OpenBet powered solutions within the Island Resort & Casino, include betting counters and self-service kiosks that comprise a range of wagering options. These include same-game parlays, in-game wagering, teasers, futures, and player props, which are integrated through OpenBet’s Trading System. 

“We are delighted to partner with 888 and Sports Illustrated Sportsbook to power their first-ever retail launch,” commented Deb Krupinski, US Vice-President at OpenBet.

“Customers at the Island Resort & Casino in Michigan can now immerse themselves in the ultimate sports betting experience in a safe and secure environment.  

“Delivering this landmark retail platform for such an iconic brand is a significant milestone for OpenBet and underscores our commitment to ensuring our partners are equipped with cutting-edge technology and unrivalled content. We’re excited about the future and eager to see the successes this launch will bring.”

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Having previously debuted the sportsbook in Colorado in September 2021, 888 is aiming to offer a ‘unique proposition’ to Virginia sports fans, combining 888’s proprietary technology alongside SI’s noticeable brand. 

Purpose built for the US market, the SI Sportsbook offers a range of wagering opportunities which includes enhanced play-in markets powered by official data from sports leagues such as the NFL, NBA, MLB, NHL, NASCAR and the English Premier League. 

Howard Mittman, President of 888 US, commented: “We are delighted to launch SI Sportsbook in Virginia. Following the success of its debut launch in Colorado last September, this is an important milestone for both ourselves and our partners. 

“With its growing base of sports betting fans, we believe that Virginia will play a significant role in the continued development of SI Sportsbook over the coming months.”

As part of the launch, 888 has partnered with Virginia-based company Virtual Entertainment Partners LLC, a Small, Woman and Minority-owned company which alongside 888, aims to make contributions to minority communities across the state to drive value, opportunity and diversity. 

Furthermore, 888 plans to expand its in-house SI Sportsbook to further states in the coming months, continuing to integrate tools and feeds to SI’s digital content. 

Mittman concluded: “Expanding further in the US market is an important part of our ambition to become a global online betting and gaming leader, and we look forward to introducing the brand to players across the state.”

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The online betting and gaming firm says that the entity has been purpose built for the US market, and has launched ahead of the National Football League season. 

Offering an enhanced in-play betting market, SI Sportsbook is powered by official data from an array of sporting leagues and tournaments, including NFL, National Basketball Association, Major League Baseball, National Hockey League, NASCAR, and the Premier League.

With more than 30 million monthly unique users, Sports Illustrated will engage readers and fans by seamlessly incorporating betting information and insights from SI Sportsbook across its content, media, and gaming.

Yaniv Sherman, SVP and head of US at 888, explained: “We are proud to launch the SI Sportsbook in Colorado. We strongly believe we have developed a unique and differentiated sports wagering experience that combines the power of our proprietary technology platform with one of the most impactful sports media brands for nearly 70 years.

“By partnering with Sports Illustrated, we have created a strong platform that enables us to build our US position through Sports Illustrated’s extensive brand footprint. 

“This provides an opportunity to cost-effectively acquire customers and build a profitable business over time. We look forward to introducing SI Sportsbook to sports fans across Colorado and are excited to continue its roll-out into new states in the coming months.”

888 and Authentic Brands Group unveiled a collaboration in June with a view to developing online sports betting and igaming products in the United States for the Sports Illustrated brand.

The operator will will also be granted an exclusive license for the use of the brand and trademarks for online casino as well as sports betting, in addition to certain exclusive advertising and editorial integration rights on select digital assets.

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Leveraging the online gambling’s group’s tech, 888 says that it expects to kick start the collaboration with the launch of the branded SI Sportsbook in Colorado during the second half of 2021, with other states set to follow. 

“We are thrilled to announce that Sports Illustrated is entering the online sports betting and igaming space,” explained Jamie Salter, founder, chairman and CEO of ABG.

“Sports wagering represents a large and high-growth market, allowing us to diversify the brand’s revenue streams and engage directly with our sports consumers, broadening the reach of the brand. 

“888 is one of the leaders in online betting and gaming globally and has outstanding technology, products and marketing capabilities, and we are excited to partner with them to offer an innovative product experience for sports fans.” 

888 will also be granted an exclusive license for the use of the Sports Illustrated brand and trademarks for online casino and sports betting, and certain exclusive advertising and editorial integration rights on select digital assets.

As part of the transaction, ABG will receive certain brand license and affiliate fees, and a minority passive interest in the group. In addition, during the term of the commercial agreement, 888 has agreed to a minimum annual advertising commitment on certain ABG media assets.

Itai Pazner, CEO of 888, commented: “We are delighted to announce this strategic partnership, enabling us to accelerate our investment into the US, which represents one of the most exciting long-term growth opportunities for our company. 

“Sports Illustrated is an iconic sports media brand, with high awareness and consumer loyalty. This agreement provides us access to millions of engaged sports fans across the US, giving us a high-volume and cost-effective customer acquisition channel, and great content to engage sports fans. 

“We are excited about the potential to deliver our cutting-edge, proprietary sportsbook platform into the market, providing Sports Illustrated fans with a first-class betting and gaming experience.”

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