888 CEO: Potential US partnership must enhance our chance to win market share
Itai Pazner suggests there is “no pressing need” to find a US partner as deals are complex and not always easy to identify
888 is holding conversations with potential US partners but will only put pen to paper on a deal which significantly enhances market share, according to CEO Itai Pazner.
Pazner is aiming to bring 888’s new ‘Spectate’ sportsbook platform to the US in H1 2021, having confirmed the business is targeting potential launches in “three or four” US states.
In its H1 2020 results, 888 reported a 64% year-on-year rise in revenue from the Americas, where US revenue jumped 90%. The group performed particularly well in New Jersey, where B2C revenue grew by 85% and FTD numbers increased by 76%.
“I think we’re definitely in a good position to take part in this very, very big opportunity that is the US,” Pazner told EGR.
“Teaming up with a significant local partner can help us in terms of brand, in terms of market access and in terms of consumer reach but because we have our own US operations anyway, the partnership needs to enhance our chance and significantly increase the size of the opportunity for this to happen.
“Those are the kind of conversations that we are in, and potentially they will mature into some kind of local deal there,” the 888 CEO explained.
888 CEO Itai Pazner has reportedly also expressed an interest in buying William Hill’s international online business
Pazner was speaking on the same day that rival operator William Hill agreed to a £2.9bn takeover offer from US heavyweight Caesars Entertainment.
Pazner explained on 888’s potential partner: “It’s either going to be big media firms with strong brands that are relevant to sports or gaming, or at the other end of the spectrum, potentially significant local gaming companies that have local licences and strong brands.
“However, these kinds of partnerships are complex, they need to be carried out in the right way and in a true partnership where both parties think alike and see the US opportunity in the same way.
“That’s not always easy to identify and therefore we will only do a deal like that if it’s the right deal for us. There is no pressing need to partner up,” he added.
888 has also reportedly signalled interest in taking on William Hill’s European online business with Caesars keen to divest its non-US assets.
The operator has the opportunity to “leverage a strong balance sheet to pursue non-organic expansion” through acquisitions, according to the H1 results.
Pazner told the Financial Times: “We are going to look at any asset that can be relevant for us, and within that list, if that opportunity comes our way that could be relevant for us.”
888 Holdings stock was up by 22.3% at close of trading on the London Stock Exchange at 255p per share.