Global sports betting company 888 Holdings announced Thursday that it is selling off selected U.S. assets to Hard Rock Digital.
The parent company of William Hill and several other international gaming brands made this decision after announcing earlier this month a review of business-to-consumer strategy with potentially major changes.
888 expects the transaction to be complete by the final quarter of 2024, pending regulatory approvals, and the company said the sale comes with a $31.5 million Adjusted EBITDA recurring annualized benefit starting in 2025.
The company is undergoing a “controlled exit of its remaining U.S. B2C operations, with the intention of fully ceasing operations by the end of 2024,” 888 announced.
The British-based operator will reinvest $12.6 million of the savings into value-creation initiatives. 888 will incur a net-one cash-off cost of $50.5 million with the U.S. exit with payments occurring between 2024 and 2029.
Reshuffling for revenue
Selling to Hard Rock is just one of many changes 888 has outlined during its strategic review.
The company announced Tuesday that it plans to operate under a new name to “better reflect the strength” of its operations and vision.
888 also ended its partnership with Authentic Brands Group’s Sports Illustrated Sportsbook earlier this month.
With changes to its U.S. strategy, 888 is turning its attention to its four core markets: U.K., Italy, Denmark, and Spain.
The company has undergone significant revenue losses in recent years. 888 lost $141 million in 2022 and another $151 million last year.
Adding assets
Hard Rock Digital, run by the Seminole Tribe’s Hard Rock International, operates in Tennessee, Virginia, New Jersey, Arizona, Indiana, Ohio, and Florida. Hard Rock Bet is the only online sports betting platform in the Sunshine State.
Gaining 888’s B2C assets could set Hard Rock up for expansion in new markets pending the spread of legalized sportsbooks.
