Gibraltar-based 888 Holdings has agreed to sell part of its U.S. B2C assets to Hard Rock Digital, as part of an ongoing strategic review of its operations announced to investors several weeks ago.
The details of the assets and financial terms remain undisclosed, with the companies expected to finalize the deal in phases by the fourth quarter of 2024, pending regulatory approvals. 888 calls it a “controlled exit of its remaining U.S. B2C operations.”
A partial or full sale of U.S. B2C operations was one of the main considerations of 888’s strategic review, with the US profit margin lower than the group level.
“In the U.S., the intensity of competition and requirement for scale means huge investment is required to reach profitability,” commented Per Widerström, CEO of 888. “We have concluded that achieving sufficient scale in the U.S. market to generate positive returns within an accelerated timeframe is unlikely.
888 has said that the action will not impact the company’s existing B2B arrangements in the U.S.
Under its new “Value Creation Plan,” 888 Holdings also plans to rebrand to “Evoke Plc” and will now focus on its four core markets in the United Kingdom, Italy, Spain, and Denmark.
888 has also terminated its Sports Illustrated licensing deal with Authentic Brands Group, which cost the company $25 million upfront and another $25 million at a later date.
Hard Rock Digital is a venture of the Seminole Tribe of Florida.
