American sports betting giant DraftKings had considered a takeover of 888 Holdings amid the struggles experienced by the latter company. While the former company has not yet approached 888 with a takeover proposal, it mulled over the possibility and discussed the matter with 888 shareholders.

According to a report by the Financial Times, DraftKings considered the takeover attempt during this summer. The financial news outlet also pointed out that the gambling company had engaged in preliminary discussions about the acquisition.

In June and July, Jason Robins, DraftKings’ chief executive officer, met with representatives of FS Gaming, a major 888 shareholder. Robins reportedly discussed the takeover with FS Gaming, inquiring about the possibility of an all-stock takeover of 888 Holdings.

The talks happened around the same time 888 Holdings was on the lookout for a new chief executive officer. For reference, that position was recently taken by Per Widerström who departed from a number of NED positions to dedicate all of his time to 888.

888’s Hurdles Make It a Tempting Takeover Target

Financial analysts believe that 888 Holdings’ precarious position makes it an ideal target for takeover attempts. In addition to its slumping share price and management and business challenges, the company had to deal with regulatory complications and a review of its license.

As a result, the Financial Times believes that DraftKings could have theoretically acquired 888 Holdings for roughly $676.9 million, based on its market capitalization at the time.

However, 888 Holdings’ massive outstanding net debt could have been a problem, according to analysts. For reference, earlier this year the company acquired the British gambling giant William Hill from Caesars Entertainment.

DraftKings’ consideration of a takeover aligns with the company’s overall expansion strategy.

DraftKings Maintains a Strong Momentum

In the meantime, DraftKings published its financial results for the third quarter of 2023. The company posted revenue of $790 million for the period, which attests to the success of its business strategy.

As a result of its strong Q3 results, DraftKings updated its FY 2023 guidance and is now expecting full-year revenue in the range of $4.5-4.8 billion.

The favorable results were attributed to the company’s launch in a number of new jurisdictions. The new launches are also expected to have a positive effect on the company’s adjusted EBITDA for 2023.

Speaking of launches in new jurisdictions, the company recently went live in Maine, enjoying a stellar launch during the first weekend of regulated sports betting in the state.

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Leading betting and gaming group 888 Holdings has issued a cautionary statement to its investors, indicating that its Q3 performance may fail to reach initial expectations. The London Stock Exchange (LSE)-listed company remained optimistic that this downturn would remain temporary, expecting a swift recovery in 2024. This announcement closely mirrors that of Entain, signaling a potential industry-wide slump.

Negative Factors Compounded To Hinder Growth

The expected 10% Q3 drop should place 888’s quarterly revenue at roughly £400 million ($487.61 million). These results may indicate an unfortunate trend for the company as last year saw another 7% slump compared to 2021’s revenue of £484 million ($590.31 million). 888 attributes this negative trend to several factors, noting that the company remains positioned to overcome these challenges and emerge stronger than before.

Sustainability initiatives form one of the primary factors behind the projected revenue decrease. While this reflects the company’s commitment to responsible gaming, it impacted profits. Enhanced compliance measures in the UK similarly affected revenues in one of the operator’s primary markets. 888 cited ‘customer friendly sports results’ as another negative factor across all jurisdictions.

Compliance challenges are a running theme in the report, as the operator admitted that regulatory changes in dotcom markets resulted in the slower-than-expected recovery in customer activity and revenue. Furthermore, a shift in 888’s marketing strategy focusing on ‘higher return marketing’ resulted in temporary disruptions as the company adjusted to its new brand-led strategy.

The Company Maintains Its Leadership Position

Despite the Q3 revenue setback, 888 Holdings maintains a positive outlook. It expects improvements in the remainder of the year, with Q4 revenue projected to be sequentially higher than Q3, although still lower year-over-year by a mid-single-digit. 888 Executive Chair Lord Mendelsohn noted that the operator was making significant strides to improve long-term sustainability, lauding the team’s efforts.

We are strongly focused on investing to deliver good levels of expected revenue growth in 2024 as we progress towards our clear target of more than £2bn of revenue in 2025.

Lord Mendelsohn, 888 Executive Chair

888’s troubles closely mirror those of Entain, one of its primary competitors. The global gaming company cited slower growth in strategic regions and UK regulatory headwinds as the primary reasons behind the drop in projected revenue. These shared challenges could reveal insights regarding the wider gambling industry as many regulators reaffirm their focus on player protection, forcing operators to adapt.

888 is currently undergoing a leadership transition as Per Widerström prepares to assume the position of CEO. This change in leadership is part of the company’s broader strategy, which includes repaying loans related to the £2.2 billion acquisition of William Hill, achieving higher profit margins, and maintaining a net debt of less than 3.5x.

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The company will now have its games available across 888 Holdings and the company’s leading iGaming platforms, including but not limited to William Hill, Mr Green, and the eponymous 888casino brand itself.

REEVO Injects Its Original Titles into 888’s Brands

REEVO will deploy a number of its cutting-edge content that has been developed internally, including Crazy Crocs, Electro Reels, and Yin Yang Twins. REEVO Head of Sales Petra Maria Poola has welcomed the opportunity to see her company collaborate with an established leader such as 888 and deploy its content portfolio further.

With access to our in-house games, players can expect cutting-edge content that caters to every gaming preference. We are excited about the potential it holds and the opportunities it will create.

REEVO Head of Sales Petra Maria Poola

Poola argued that the two companies would bring exceptional gaming experiences and offer a diverse collection of top-performing titles and cutting-edge content. “We are confident that this partnership will bring immense value to both companies,” Poola said.

888 Group Head of Content Ofir Gal-Mor was of a similar mind, hailing REEVO’s content quality and commitment to building exceptional titles. “Partnering with REEVO will further support our central product and content leadership strategy at 888,” Gal-Mor noted.

REEVO’s diverse content platform is a great way to ensure that 888 remains competitive and that its brands access some excellent games to offer to players. Apart from crafting its own games, REEVO has been building a solid portfolio of aggregated content.

Over the past several months and weeks, REEVO has been rapidly expanding its aggregation platform and solution. The company added more than 60 titles by Hacksaw Gaming earlier this month and it similarly onboarded Orbital Gaming and Vibra Gaming to strengthen its expansion in different jurisdictions.

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Bragg Gaming Group, a leading player in the iGaming sector, has recently inked a significant global distribution deal with 888 Holdings, a renowned betting and gaming company boasting ownership of esteemed brands like William Hill, 888, Mr Green, and SI Sportsbook.

Bragg’s Premium Games Now Available on William Hill and 888casino

The latest deal is set to unleash Bragg’s exclusive content across various prominent brands operated by 888 Holdings. Players can expect the launch of Bragg’s top-notch games on the widely recognized William Hill platform in the UK, Mr Green in Italy, Sweden, and Denmark, and 888casino in Italy – a major milestone as it marks the first time 888casino will feature Bragg’s content after successful launches in the UK, Spain, and Ontario throughout the last year.

The strategic partnership is set to revolutionize the distribution of Bragg’s proprietary and exclusive content across multiple regulated markets, providing a diverse array of unique and popular titles from Bragg Studios brands, including fan favorites such as Atomic Slot Lab and Indigo Magic. Furthermore, the deal encompasses offerings from Powered by Bragg partners, promising players an even more dynamic gaming experience.

Bragg has been expanding to new markets in recent months. In May it widened its presence in Spain through a partnership with Gran Madrid|Casino Online. In July, it set foot on the Georgian market with its collaboration with Adjarabet and further expanded in Switzerland by providing its content to the Swiss4win platform.

Bragg Gaming Group’s President Delighted with Major Distribution Deal

Lara Falzon, the president, and chief operating officer at Bragg Gaming Group, expressed her delight about the alliance with 888 Holdings:

“We are thrilled to announce this exciting new distribution deal with 888 Holdings – including for the William Hill and Mr Green brands – given that 888 is one of the most renowned operators in the global gaming industry. Our extensive portfolio of exclusive iGaming titles includes games tailored for a diverse range of tastes, enabling us to provide exceptional entertainment experiences to 888’s vast global player base.”

Falzon emphasized that this partnership would pave the way for Bragg to tap into the UK, Italy, Sweden, and Denmark markets, granting access to Bragg Studios and Powered by Bragg content for the very first time.

Ofir Gal-Mor, group head of content at 888 Holdings, also shared his thoughts on the collaboration. Gal-Mor praised Bragg Gaming’s forward-thinking approach and its reputation for delivering top-tier quality content in the iGaming industry. He expressed enthusiasm about strengthening their partnership, building upon their cooperation since early 2022. Gal-Mor eagerly anticipates integrating Bragg’s diverse content portfolio into their esteemed William Hill and Mr Green brands, further enhancing the gaming experience for their players.

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William Hill Limited, a UK-based subsidiary of Gibraltar-based 888 Holdings, has published its annual financial report for 2022, a flat year in which foreign exchange gains helped the business to profit.

Betting Shops Saved the Day

For the 52 weeks ended December 27, 2022, William Hill generated net revenue of £1.2353 billion ($1.5688 billion), ending the year marginally down, 0.5%, from £1.2414 billion ($1.5766 billion) the business registered in 2021.

The result was mainly due to William Hill’s Retail division, which saw a return of people to the betting shops as there were no lockdowns in the period and delivered net revenue of £514.2 million ($653 million), a 53% increase on the previous year’s result of £336.8 million ($427.74 million).

The increase in Retail was offset by the drop in both UK Online and International businesses: online operations in the UK accounted for net revenue of £509.1 million ($646.6 million), a drop of 19% from £628.6 million ($798.3 million) registered in 2021, while the International business generated 23% less, £212 million ($269.2 million), as compared to £276 million ($350.5 million) in 2021.

The revenue decrease from online operations in the UK was influenced by the return of people to the betting shops, as well as the implementation of enhanced customer safety checks in preparation for the upcoming white paper on the ongoing review of the Gambling Act 2005. International was impacted by additional regulatory measures and William Hill’s departure from the Netherlands.

EBITDA, Operating Loss, Profit after Tax

The group’s Adjusted EBITDA for the period was £214.8 million ($272.8 million), an impressive 32% increase from £161.7 million ($205.4 million) in 2021. Across the divisions, Retail accounted for £95.7 million ($121.5 million) (£0.1 million in 2021), UK Online added £112.2 million ($142.5 million) (£153.5 million in 2021), and International contributed £33.1 million ($42 million) (£34.1 million in 2021).

Exceptional items and adjustments increased from a loss of £99.4 million ($126.2 million) in 2021 to a loss of £148.7 million ($188.8 million) due to deal-related costs and an increase in legal provisions.

William Hill registered an operating loss of £31 million ($39.4 million), down 52.7% from £65.5 million ($83.2 million) in 2021, due to a reduction in marketing expenses.

A one-off foreign exchange gain of £198.8 million ($252.5 million) on financing items as a result of exchange differences on the group’s debt to its parent helped profit after tax increase to £168.4 million ($213.9 million) and reverse the previous year’s loss of £58.9 million ($74.8 million).

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Everi Holdings, a leading provider of casino and iGaming products, financial technology and loyalty tools, has announced that it has received a new badge of honor. The supplier proudly announced that it has been named one of Nevada’s top workplaces.

The 2023 Nevada Top Workplaces award, provided by the Las Vegas Review-Journal and Las Vegas Business Press, designates Everi Holdings as a company with a healthy workplace culture that cares for its employees.

2023 notably marks the third year in a row Everi Holdings has received this recognition. In total, the company has received 21 Top Workplaces honors over the last three years, further attesting to its functional culture.

In 2023, Everi also earned four Culture Excellence awards from Top Workplaces – for Innovation, Work-Life Flexibility, Compensation and Benefits, and Leadership. Furthermore, the provider’s name made it to the Top Workplaces USA list for the second year in a row.

Randi Taylor, chief executive officer of the company, said:

We have worked diligently to create a positive company culture with shared values across multiple office locations and with our talented team of remote employees in Nevada, so we are thrilled to be recognized once again by Top Workplaces.

Randi Taylor, CEO, Everi Holdings

Taylor added that Everi Holdings would not have secured the award if not for the extreme dedication and hard work of its team members.

Energage Praised Everi Holdings’ Efforts

It is worth noting that the Top Workplaces award Everi has received is entirely based on employee feedback gathered by the employee engagement technology platform Energage. Energage has over 16 years of experience in probing how employees from over 70,000 organizations feel about their workplace.

The best thing about this vote is that it maintains the anonymity of the respondents, allowing them to share their honest thoughts on 15 culture drivers. Some of these include alignment, execution and connection, among others.

Energage’s chief executive officer, Eric Rubino, commented on the development, saying that a Top Workplaces award is a badge of honor for companies. He added that Everi Holdings should be proud of receiving the award for the third year in a row.

In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. Top Workplaces do this, and it pays dividends.

Eric Rubino, CEO, Energage

Everi Holdings shared its thoughts, attributing the accreditation to the hard work it has put into creating a positive company culture. Despite having many offices in Nevada, the company strives to maintain homogeneous values across its hubs, ensuring the well-being of all of its workers.

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Macau casino operator SJM Holdings has announced a renewal of its agreement with L’Arc Entertainment. The deal starts on January 1, 2023, and will run till December 31, 2025.

In a filing with the Hong Kong Stock Exchange on February 28, the operator explained that L’Arc will be providing management services, as well as L’Arc Hotel Macau as a satellite casino. The entertainment company will also see to the day-to-day running of the casino.

Per the terms of the agreement, L’Arc will bear all costs and expenses related to running the casino, while SJM will be responsible for tax payments. In terms of remuneration, L’Arc will be paid a monthly fee by SJM in the form of “fixed percentages” of monthly gross gaming revenue (GGR) from the casino operation.

The agreement further states that payment to L’Arc will be capped per year, increasing each year to cater for expected changes to the Macau economy. For 2023, the annual payment is set at HK$253.1 million (US$32.2m); for 2024, the cap will be set at HK$351.7 million ($44.8m); and in 2025, it will rise to HK$450.1 million ($57.34m).

The filing explained that the caps were set “due to the expected recovery of visitor arrivals and gaming revenue as a result of the loosening COVID-19 pandemic preventive measures and travel restrictions”. The figure for 2023 is much less than what SJM paid L’Arc in 2019.

L’Arc Entertainment is wholly owned by Angela Leong On Kei, the co-chairman and executive director of SJM Holdings. SJM and L’Arc have been enjoying a partnership since 2009, when L’Arc first opened. It is one of the many third-party casinos to which SJM lends its license.

Other satellite operators under SJM include Casino Grandview in Taipa, and the Macau peninsula venues Casino Landmark, Casino Casa Real, Casino Kam Pek Paradise, Casino Fortuna, Casino Emperor Palace, Casino Ponte 16, and Casino Legend Palace.

Due to her interests in both companies, SJM Holdings informed the Exchange that “Ms Leong was absent from the board meeting of the company” while the latest deal with L’Arc Entertainment was under discussion. She also “abstained from voting on the board resolution on approving the renewed L’Arc services agreement”.

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