Hard Rock Digital acquires 888’s US B2C business
Florida-headquartered tribal operator to snap up sports betting and online casino assets through phased disposal process in an undisclosed deal
Hard Rock Digital has acquired 888’s US B2C assets in an undisclosed deal which the William Hill parent company said would drive cost savings across the business.
The sale of the US B2C arm to Hard Rock Digital comes weeks after 888 confirmed a strategic review into the group’s US operations and just 24 hours after the release of the group’s full-year 2023 results.
As part of that review, 888 announced it would pay £50m ($63.2m) across two tranches to end its relationship with Authentic Brands Group for the licensing of Sports Illustrated which has been leveraged to operate SI Sportsbook and SI Casino.
The operator has suggested that the exit from the US B2C market will result in a recurring annualised benefit to adjusted EBITDA of around $31.6m from 2025 onwards.
888 said it was planning to reinvest around $12.6m of these savings into growth and value creation plans.
The structure of the deal, which is subject to regulatory approval and other conditions, will see 888 dispose of its B2C operations in a number of phases.
The group said the final completion is expected to come in Q4 2024.
888, which is set to rebrand as evoke, also expects to incur a net one-off cash cost of around $50.6m in relation to the US exit.
The firm added that this was inclusive of the aforementioned brand licence termination fee, with those payments spread out between 2024 and 2029.
In terms of Hard Rock Digital, the operator holds an effective online sports betting monopoly in Florida and is live in half a dozen other US states, including Ohio, Indiana, Arizona and New Jersey where it also offers online casino.
SI sportsbook is live in Colorado, Michigan, and Virginia, yet the brand has struggled to make much of an impact since launching in 2021 following the mothballing of 888sport in the US.
Eilers & Krejcik Gaming estimates SI’s sports betting market share to be 0.06% based on gross gaming revenue.
888 has been in the US with B2C operators since launching online casino in New Jersey in late 2013 as part of the first wave of regulated igaming brands to go live in the state.
Hard Rock Digital received an $85m investment from Playtech last year which saw the supplier take a mid single-digit minority stake in the business.