888 secures market access deals to enter Colorado, Iowa and Indiana2nd December 2020 1:04 pm GMT
London-listed betting and gaming operator 888 Holdings has signed three new market access deals to enter the regulated US sports betting markets of Colorado, Indiana and Iowa.
The three multi-year agreements will increase the number of states where 888 has a presence to six, with 888Sport set to launch in Colorado under Colorado Grande Casino’s licence.
In Iowa, 888Sport will launch in partnership with Catfish Bend Casinos, while in Indiana, the operator has signed an agreement with Caesars Entertainment’s Harrah's Hoosier Park.
“We are delighted to sign these agreements with three great partners - the Colorado Grande Casino, Catfish Bend Casino II LLC, and Harrah's Hoosier Park - that will enable 888 to bring its first-class online sportsbook to bettors in Colorado, Iowa and Indiana,” said 888 CEO Itai Pazner. “The US online betting and gaming market has huge growth potential, and we continue to build a strong platform for growth across both our B2B and B2C operations.”
888 senior vice president and head of commercial development Yaniv Sherman commented: “Expanding 888Sport.com into these three states represents another major milestone in our ongoing growth across the regulated US online gaming market.
“We have deployed our proprietary technology in the US, and our exciting pipeline of new products will deliver industry-leading propositions to customers across both our B2B and B2C operations. We continue to appraise strategic partnerships that will provide additional brand-building and market access opportunities for 888 across the U.S. market in the near future.”
Alongside the market access deals, 888 said in a trading update that it has continued to deliver a strong operational performance during the second half of the year, with revenue and adjusted EBITDA expected to be ahead of prior expectations.
Revenue is expected to be approximately 45 per cent ahead of 2019, while the adjusted EBITDA margin for the period is expected to be approximately 18.5 per cent, consistent with the margin achieved in the first half of the year.
“This performance continues to reflect strong FTD trends in line with the group's recreational customer focus as well as the structural shift towards online services being seen across several consumer-facing industries,” continued Pazner. “We have continued to prioritise safe gambling and recognise the impact of COVID-19 on the lives of 888's customers across global markets.
“888 continues to invest in protecting customers and has again increased the volume of interactions with customers initiated by 888's safer gambling team in order to help prevent gambling related harm. Underpinned by 888's core strengths as a responsible operator with outstanding technology, the group remains well positioned to deliver further strategic progress.”
Shares in 888 Holdings plc (LSE:888) were trading up 2.20 per cent at 278.50 pence per share in London following the announcement Wednesday.