Hard Rock Digital Acquiring 888’s US OperationsMove Comes As 888 Exits US Market |
|
Longtime online gaming and online poker operator 888 Holdings has announced that the company is leaving the U.S. market completely and selling all assets in the country.
The company is offloading all its U.S. operations to Hard Rock Digital (HRD). Hard Rock operates online gaming and sports betting in seven states and the move is expected to give the company access to the Michigan market.
“The group has commenced a controlled exit of its remaining US B2C (business to consumer) operations, with the intention of fully ceasing operations by the end of 2024, subject to regulatory approvals and process,” 888 noted in announcing the move.
Saving Millions With Move
888 offered online gaming in New Jersey, Delaware, and other states. Delaware allows for one iGaming operator and 888 had held that position until January. For online poker, the company partnered with the state’s three racetracks.
However, Rush Street Interactive has since taken over the state’s contract and also recently partnered with Rhode Island for a similar iGaming operation. Delaware has seen a surge in revenue since Rush Street took over the contract.
888 previously partnered with WSOP.com to include Delaware in a shared liquidity pool that included Nevada and New Jersey. With the change in operators, poker players have been left out, but Rush Street is expected to launch online poker in the U.S. at some point.
The sale is expected to save 888 about $31.4 million annually from 2025 onward. The company intends to reinvest about $12.5 million of that into growth and “value creation initiatives.”
“I look forward to updating you on the outcome of this (sale) as soon as we can,” 888 CEO Per Widerström said during an earnings call recently.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
