888 Confirms Intention to Sell US B2C Assets to Hard Rock Digital

The leading gaming and entertainment company, 888 Holdings, currently has a presence in four US states. The company has established iGaming operations in New Jersey, offers sports betting in Virginia and Colorado and has iGaming and sports betting presence in Michigan as well. Earlier this month, 888 confirmed it engaged in a review of its US-facing business-to-consumer (B2C) operations.

On Thursday, it said that the strategic review has now been completed and the company anticipates selling B2C assets. The divested assets will be sold to Hard Rock Digital (HRD), 888 confirmed. Still, the company did not disclose financial details or reveal what assets it would sell to HRD. 888’s most recent statement explained that the divestment of assets will be completed over a number of phases.

Not unexpectedly, the offloading of B2C assets is subject to relevant regulatory approvals, among other relevant conditions. According to 888, the completion of the assets’ sale is expected at some point in Q4 this year.

“As a result of the review the Group has agreed the sale of selected assets to Hard Rock Digital, completion of which is conditional upon, amongst other items, relevant regulatory approvals. It is expected that the disposal will be completed in a number of phases, with final completion expected in Q4 2024,“

reads a statement released by 888

The Company Executes a Controlled Exit from the US B2C Sector

The announced sale of US B2C assets to HRD is a part of 888’s broader plan for its controlled exit from the vertical. Withdrawing from the US B2C operations is expected to be completed by the end of the year. Still, 888 explained that the completion of this process is subject to different processes along with relevant regulatory approvals.

The leading gaming and entertainment company confirmed that it is expected to realize recurring annualized benefit to adjusted EBITDA of approximately £25 million ($31.5 million) from 2025 onward from the exit of the US B2C sector. Some £10 million ($12.6 million) from those savings will be used by 888 to fuel its growth and develop new initiatives that are expected to create value. “The combined net impact of the sale and exit of US B2C were already incorporated into the financial targets that the Group announced on 26 March 2024,” wrote 888.

Earlier this week, the company released its FY 2023 results. The company’s revenue last year was £1.71 billion ($2.16 billion), a result that marked a slight 8% pro-forma decline. Explaining the result, 888 said that it comes amid changes to the gambling sector in the UK, dotcom exits and a reorientation to sustainable growth.