In a time when the US is experiencing a sports betting boom, the gambling giant 888 has announced they’re set to be leaving the market.
In an update from this morning (Mar. 6) on the London Stock Exchange, the firm has announced a ‘strategic review of its US B2C operations.’
Currently, 888 is active in four states, with SI Sportsbook and SI Casino in Michigan, SI Sportsbook in Colorado and Virginia, and 888casino in New Jersey.
The company has seen huge success in the UK and other countries like Israel, Portugal, Spain, Sweden, Italy, and more, with 888 Holdings plc owning brands such as 888casino, 888poker, Mr Green, 888sport, and William Hill.
The international sports betting company goes on to explain the reasonings behind taking a thorough look at their US arm: “The gross profit margin in the US is lower than the group level, reflecting significant direct costs of operating in the market including duties, market access fees, and license fees, in addition to intense competition from well-capitalized incumbent participants.”
As they go forward, they’ll be looking at all ‘potential alternatives that can deliver value for the business,’ which could include the sale of the Group’s US B2C business, the controlled exit of US B2C operations, or other possible strategic transactions.
CEO of 888, Per Widerström said: “…we have concluded that achieving sufficient scale in the US market to generate positive returns within an accelerated timeframe is unlikely.”
US sports betting boom continues
Online betting has been on the rise in the US since the 1992 ban on sports betting was overturned in 2018. Before this, anyone who wanted to bet on sports legally had to travel to casinos in Nevada or three other states which were exempt from the ban.
Now, punters can legally take part in some form of sports betting in 38 states and you can do so online in 25 jurisdictions.
Since betting was legalized, Americans have gambled more than $245bn. In 2022, over 25 million people engaged in sports betting in the US, with the figure forecast to increase by 47 percent by 2025.
Featured Image: Via Ideogram.ai
