888 Considering US Exit – Terminates Partnership with Sports Illustrated

888 Holdings has announced that it is undertaking a strategic review of its US operations and will now consider the sale of the group’s B2C business in the United States.

However, today’s announcement also revealed that the company would terminate its partnership with Sports Illustrated (SI). As part of the termination agreement, 888 has agreed to pay SI $25 million immediately and a further $25 million between 2027 and 2029.

According to the statement, the group’s US profit margin is lower than the overall group level. The company states that this is a reflection of the significant costs of operating in the US and the competitive nature of the local market. As a result, the group has come to the conclusion that its current operations in the US will not offer optimal returns. The termination of the SI deal is projected to result in cost savings of $6 million to $7 million per year.

The strategic review of our US B2C operations will continue at pace, and I look forward to updating shareholders on our plans for the wider Group in late March.”

In August of 2021, 888 and SI announced a long-term partnership agreement ahead of its launch in the state of Colorado. Then, in an unanticipated move, the company pulled its sports betting product from the New Jersey market in December of the same year.

Jenny Tang

An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.