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

Global sports betting giant British-based 888 Holdings appears to be on the verge of exiting the bustling U.S. market, thanks to what has been identified as operational costs associated with its presence in the American market, competition for market share, and ultimately, low margins for the sports betting provider. Users who may be seeking new places to bet will want to check out our best sportsbooks.

The recent demise of the iconic Sports Illustrated and its sports gambling platform for which 888 Holdings signed what at the time seemed like a bulletproof and transformational partnership with, certainly doesn’t help.

“A series of record-breaking months for SI Casino has underscored the strength of the SI brand,” said Per Widerström, CEO of 888 on Monday. “However, despite these successes, we have concluded that achieving sufficient scale in the U.S. market to generate positive returns within an accelerated time frame is unlikely.”

888 Holdings will, according to company brass will be looking for “potential alternatives that can deliver value for the business.”

What 888 could be giving up

888 currently has a presence in a few key states in the American market, but only one uses its name. Colorado, Michigan, New Jersey, and Virginia all have an 888 sports betting product in their jurisdictions, but New Jersey boasts one branded with the 888 name.

Since a 2021 partnership announcement with Sports Illustrated and its parent company, Authentic Brands, 888 has been powering SI Sportsbook in several legal sports wagering states.

888's break-up with Authentic Brands will cost the company $25 million in cash and another $25 million in 2027.

The competition factor

The legal sports betting industry in the U.S. has been booming since the 2018 Supreme Court decision to overturn its blanket ban on sports betting. 

Promotional spending has been heavy, including duties, market access fees, and license fees necessary to attract new bettors to a particular brand. This is a reason cited for 888 to abandon its partnership with Sports Illustrated and to start a rumored exit from the American market.

"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,” CEO Widerström said. “In the U.S., the intensity of competition and requirement for scale means huge investment is required to reach profitability.”

Not dead yet

While signaling its intentions to exit the American market, 888 Holdings has not quite given up on the overall scene just yet. The company has decided on what it calls a “strategic review” of its state-side businesses. 

Widerström states, “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.” 

This means that the brand's future in America is very much up in the air. 888 Holdings could choose to maintain its current business levels in America or sell assets to concentrate on European markets, which boast 888 sportsbooks and another top-tier European book, William Hill, which 888 owns.

According to an 888 Holdings press release, “There can be no assurance regarding the results or outcome of the review.”