888 Holdings has reached an agreement to offload its complete bingo division, including both its direct-to-consumer (B2C) and business-to-business (B2B) segments, to Saphalata Holdings, an entity operating under the Broadway Gaming group. The transaction is valued at a substantial $50 million.
Although the deal’s finalization is projected for the second quarter of 2024, it is contingent upon two key factors: the successful reorganization of the bingo business and the procurement of all requisite licenses for this restructured entity to function within the legal framework of the UK.
As stipulated in the agreement, 888 has pledged to furnish Broadway with a suite of transitional services for a duration of up to one year post-acquisition, adhering to a pre-established fee structure.
This strategic maneuver by 888 to divest its bingo operations underscores its dedication to intensifying its focus on its primary iGaming platform. By streamlining its operational scope, 888 seeks to liberate resources and direct them towards expediting growth within its principal markets.
Itai Pazner, Chief Executive Officer of 888, elucidated the reasoning behind this decision, asserting that it enables 888 to hone its concentration on its core platform and its unified, adaptable, and proprietary technology. This, in his view, will empower 888 to fortify its presence in key product verticals such as casino, sports, and poker, solidifying its standing as a dominant force in the global online betting and gaming entertainment sphere.
David Butler, Chief Executive Officer of Broadway Gaming, conveyed his enthusiasm regarding the acquisition, emphasizing its potential to establish a more robust global presence for Broadway within the regulated bingo market. This acquisition will be assimilated with Broadway’s existing holdings, including its well-regarded “Butlers Bingo” brand.
In 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 million active users in the United Kingdom and a collection of 1,400 wagering establishments to the 888 portfolio.
Moreover, 888’s online bingo endeavors demonstrated significant profitability in the year 2020, yielding roughly $65 million in income and a noteworthy $74 million in earnings before interest, taxes, depreciation, and amortization.
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