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  1. #1
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    The Buzz is offline GPWA Gossip Hound
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    Default 888 eyeing exit from US market

    Today, 888 and William Hill announced that it will shell out $50 million (£39 million) to bow out from its struggling U.S. venture.

    Entering the US market in 2021, the operator was behind its competitors in timing as states progressively legalized sports betting and online casino activities. To establish its presence, it struck a licensing agreement with Sports Illustrated's proprietors, leveraging the renowned magazine's brand for its sportsbook.

    From The Standard:

    After it failed to attract Sports betting customers, 888 aimed to focus the brand more on online casino games, where smaller players in the market are usually more profitable. However, American states have been slower to legalise those games.

    888 will now cut its losses, launching a review that could lead to a sale, “controlled exit”, or “other possible strategic transactions” for its American arm. It will “part ways” with Sports Illustrated, which has faced difficulties of its own on the publishing side this year, with waves of layoffs and fears that it could stop printing entirely.
    The betting giant will pay $25 million up front and another $25 million between 2027 and 2029 to terminate the partnership.

    888 also offers some business-to-business services in the US, which will not be part of the review.

    888 boss Per Widerstrom said: “Since commencing my role as CEO I have been focused on ensuring the Group is set up to deliver strong value creation in the coming years. In the US, the intensity of competition and requirement for scale means huge investment is required to reach profitability.
    Read more here: https://www.standard.co.uk/business/...-b1143464.html

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  3. #2
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    Christiaan is offline Private Member
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    Does anyone have details on how much the original deal was and for how long? $50 milion to buy out seems a lot. And a revenue of only 20$ milion making $12 milion loss!

    I am not into the US market. I would think partnering up with a known brand as Sports Illustrated would get a bigger share than 0.2%. Does anyone have insights on why they did so bad?

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    tufty is offline Public Member
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    Sounds like unbelievable incompetence - failing in a booming market.

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    Figures. Can't really compete with brands that actually made partnerships with the right media, such as ESPN, or those that have a true foothold in the market through their USP such as FanDuel and DraftKings.

    These guys thought they'd convert casual SI paperback readers, is it? Even those guys that did a partnership with the sports memorabilia site did better.

    They did business the way it was done in 2000s. Good riddance.
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