888 Mulls U.S. Market Exit — Pays $ 50M to Terminate Sports Illustrated Deal

888 Holdings, one of the world’s leading gambling companies, is considering pulling out of the U.S. market by the end of 2024, citing fierce competition and high investment costs.

The company’s decision comes after it ended its partnership with Sports Illustrated (SI), which involved running sportsbooks and casinos.

To end the deal, 888 paid $25 million upfront and agreed to pay another $25 million between 2027 and 2029. However, the company expects to save $6-7 million over the next two years from the termination.

888’s CEO, Per Widerström, explained the rationale behind the company’s exit strategy, saying, “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 U.S., the intensity of competition and requirement for scale means huge investment is required to reach profitability.”

Currently, 888 operates under the SI brand in states like Colorado, Michigan, and Virginia, where online gambling is legal and regulated. The company also runs its own brand, 888, in New Jersey.