888 Holdings has inked an agreement to offload its complete bingo operations – encompassing both the consumer-facing and business-to-business segments – to Saphalata Holdings, an entity operating under the Broadway Gaming group. The acquisition price? A tidy $50 million.
However, don’t anticipate a swift conclusion. The transaction is projected to finalize sometime in the second quarter of the following year, contingent upon the bingo business undergoing internal reorganization and securing approval from UK regulatory bodies.
As stipulated in the arrangement, 888 will remain involved for a period, delivering a suite of transitional services to Broadway for up to a year post-closing. Consider it a period of acclimation support.
So, why is 888 divesting its bingo division? It’s a matter of strategic realignment. They are intensifying their focus on core offerings, necessitating the liberation of resources and a laser-like concentration on expansion within their most crucial markets.
Itai Pazner, the chief executive at 888, articulated it thus: “This strategic maneuver will enable us to enhance our focus on our primary platform and technology, empowering us to genuinely drive growth in pivotal domains such as casino gaming, sports wagering, and poker. Our objective persists in maintaining a position as a global frontrunner in the realm of online betting and gaming.”
David Butler, CEO of Broadway Gaming, shared his perspective: “We are delighted to incorporate 888’s bingo business and platform into our portfolio. This acquisition, coupled with our existing brands like ‘Butlers Bingo,’ strategically positions us for an even more formidable global presence within the dynamic landscape of regulated online bingo.”
During the ninth month of 2021, 888 Holdings broadened its scope by purchasing the non-American holdings of William Hill from Caesars Entertainment. This calculated maneuver added 2,000,000 active customers within the United Kingdom and a significant physical footprint of 1,400 wagering establishments to 888’s portfolio.
Moreover, 888’s bingo endeavors demonstrated considerable profitability in 2020, yielding roughly $65,000,000 in income and $7,400,000 in earnings before subtracting interest, taxes, depreciation, and amortization (EBITDA).
admin