Hard Rock Digital Begins Purchase of 888 Holdings US Gaming Assets

888 has unveiled plans to divest selected US B2C assets to Hard Rock Digital as part of its extensive overhaul of North American operations. This move follows the conclusion of a strategic review and signals a deliberate withdrawal from the US market.

While the specifics of the deal remain undisclosed, it is slated for completion in Q4 2024. The financial targets outlined earlier incorporate the combined impact of the sale and US exit.

888 foresees one-off cash costs nearing $50.5 million by 2029, alongside an annualized adjusted EBITDA boost of approximately $31.6 million from 2025 onwards, with a portion allocated to growth initiatives.

• Pending regulatory approval, 888 aims to cease all US operations by year-end 2024.

• The company is currently active in Colorado, Michigan, New Jersey and Virginia.

• In New Jersey, 888 also operates under its exclusive 888casino brand.

At the dawn of March, 888 initiated a comprehensive review of its US B2C operations, signaling the termination of its partnership with the Authentic Brands Group. This alliance had granted 888 exclusive rights to utilize the Sports Illustrated (SI) brand for online betting and gaming, facilitating its presence in three states under the SI Sportsbook and Casino brand.

CEO Per Widerström emphasized the formidable competition and the need for scale in the US market, noting the substantial investment required for profitability. Despite SI Casino's commendable performance, achieving sustainable scale within a short timeframe remained uncertain.

• 888 has now launched a corporate rebranding, transforming into Evoke Plc.

• The name change will require shareholder approval.

• Alongside rebranding, the company announced medium-term revenue growth targets of 5–9% and plans to reduce leverage by 2026.

Past corporate rebranding efforts—like Standard Life Aberdeen’s “Abrdn” and Royal Mail’s “Consignia”—have faced criticism, yet 888 appears confident in its strategy.

This transformation is part of 888’s broader Value Creation Plan (VCP), introduced with its 2023 full-year accounts. While reporting a strong corporate revenue of $2.16 billion, marking a 38% year-over-year increase, the company’s pro forma revenue declined by 7.5%, and international revenue rose slightly by 1.8%.

CFO Sean Wilkins acknowledged the company’s financial performance as “disappointing” during the earnings call on March 26, underscoring the need for the ongoing strategic overhaul.

In conclusion, 888’s exit from the US market, upcoming rebrand to Evoke Plc, and renewed focus on sustainable global growth mark a turning point in the company’s evolution and long-term positioning.