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888 agrees to sell certain U.S. B2C assets to Hard Rock Digital

Global gaming group 888 Holdings has divested a number of business-to-customer (B2C) assets following a strategic business review.

Hard Rock Digital benefits from 888’s move, which the company calls “a controlled exit from its remaining US B2C business.”

Hard Rock Digital is one of the leading sports betting and online gaming operators in the United States. The company quickly acquired the 888 assets after conducting a review.

888 Sale of B2C Assets

The operator’s review earmarks a sale of its U.S. assets after a tumultuous 2022 and 2023. The company reported a loss of 115.7 million pounds ($141 million) in 2022 and a pre-tax loss of 121.3 million pounds ($151 million) in 2023.

888 CEO Per Widerström said, “In the United States, the intensity of competition and scale requirements mean that huge investments are required to achieve profitability.”

The head of the gambling operator said that while some U.S. gambling markets are performing well, “we (888) have concluded that achieving sufficient scale in the U.S. market to generate positive returns in an accelerated timeframe is unlikely. “

888 concluded that “subject to the results of the review, the Group has agreed to sell selected assets to Hard Rock Digital (“HRD”), the completion of which is subject to relevant regulatory approvals, etc. The disposal is expected to be completed in multiple stages , and is ultimately expected to be completed in the fourth quarter of 2024.”

As 2024 approaches, the dynamics of the U.S. gambling and online gaming market will only continue to become more complex.

Aside from incumbents giving up territory in the U.S. market, there are limited opportunities for gaming operators to expand existing markets. Unless a state allows more gambling options to exist.

The largest operator in the United States is ready to capitalize in states that do not have any form of gambling legislation.

Missouri is one example. Home of the current Super Bowl champion Kansas City Chiefs. The state’s football and other sports teams are lobbying to ease current restrictions on gambling. These big-name brands hope to benefit from lucrative sports betting partnerships with brands like Hard Rock Digital.

Image: ideogram.

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