One of the world’s largest online casino businesses, 888 Holdings, has been hit by a sudden slump in the value of its United Kingdom shares. The move has sent ripples across the entire company, but this is nothing too serious, 888 reassures us, though it deserves to be examined in detail.
888 Ways to be Successful
888 has been a flagship leader in the casino industry. There’s really little that could be associated with its name in a negative way. The operator has been one of the most innovative and committed iGaming companies on the market, developing its own gaming products which has always given it a particular feeling of exclusivity.
Today, the 888 shares are shaken by a 9% slump. As per the latest reports, the group revenue increased only by 1% for a total of $273.2 million in the first half of the year. This has been a rather modest result, but a growth nonetheless. As chief instigators of the progress, the group cited its strong casino and sports divisions.
In terms of pure profit, 888 has managed to obtain as much as $60.1 million, which was quite a fair bit better than the 2017 results which were posted at a loss of $17.3 million. While 888 has been diversifying its portfolio, quite skilfully if we may add, UK revenue has fallen by 18%, down to $86.5 million.
A lot of that has been occasion by tighter anti-money laundering practices, which have forced a lot of companies to change up their act and emphasize customer security as well as invest additionally in due diligence.
Dealing with Adversity or How the Best Players Adapt
When regulation comes kicking in, there is really only one way to settle matters – by complying. This is what 888 CEO Itai Frieberger thinks himself. Automation and innovation have been a key part of the offer of the casino and adapting to the variables in the industry has helped the casino bolster its operational results while staying within what’s legally permissible.
Meanwhile, 888 has been making a steady push in the United States where the website has decided to expand an interstate poker network and benefit from the repeal of PASPA which will allow the gambling company to develop its operations in full.
The United States is on its way to prove a particularly lucrative market where companies can reliable expect to develop and scale in the long-term. This has been confirmed by 888 as well as other companies currently making move on the country, including William Hill and bet365.
While deliberating the potential of expanding into the United State, Frieberger also reiterated that the casino is committed to keeping in line with the laws and regulations. Enhancing the customers’ experience has also been an important part of the casino’s mission. 888 is definitely poised to benefit well from the rapid expansion expected in the gambling sector.
888 will have to shift some of its assets in order to retain market share. With the recent dip in its market share in the United Kingdom, the company is now downsizing on its research & development and innovation by estimated 4%.
It seems that cutting back on the exclusive products is the best course of action in the short term.