888 Holdings PLC is part of Evoke plc and operates in regulated markets worldwide offering secure gaming experiences. In 2005, it went public on the London Stock Exchange and has since been trading as 888.
Over the past decade, Through mergers and acquisitions, 888 has expanded its product offerings and market to be the gambling behemoth it is today. Read on to find out more about how it started, who founded it, and how much revenue the company makes per year.
- Website: www.evokeplc.com
- Founder: Avi and Aaron Shaked, Ron and Shay Ben-Yitzhak
- CEO: Per Widerström
- Founded: 1997
- Revenue: £1.70 billion in 2023
- Status: Public (London Stock Exchange under the ticker symbol 888)
- Headquarters: Gibraltar (Corporate office in London, UK)
- Core Markets: Global, with significant operations in the UK, Europe, and regulated markets worldwide
- Products: 888sports, 888casino, 888poker, William Hill, and Bingo Brands (888ladies.com, Wink Bingo, Posh Bingo, Tasty Bingo, RedBus Bingo, Bingo Street, Big Brother Bingo, 888bingo.com and Bingo Appy)
History
888 Holdings PLC has made significant progress since it started in 1997. It began as a small startup in the unregulated online gambling industry and has now become a multinational company with many gaming and gambling products with millions of active users.
Despite facing challenges and competitors, 888 maintains its position as a market leader thanks to customer satisfaction, innovation and responsible gambling.
Here’s a short timeline of the main events that made it the giant it is today:
1997-2006: Early Developments and Expansion
- 1997: 888 Holdings founded and launched Casino-on-Net.
- 2002: Listed on the LSE, launches 888.com, Pacific Poker, and Reef Club Casino.
- 2005: Listed on LSE Main Market, acquired Globalcom Limited’s Bingo business.
- 2006: Ceases US activities due to UIGEA.
2007-2015: Expansion and New Ventures
- 2007: Acquires Globalcom Limited’s Bingo business and enters the B2B arena.
- 2012: Launches 888casino in Italy, gains Nevada gaming licenses.
- 2013: Expanded into sports betting with a dedicated platform.
- 2014: Launches 777 retro-themed casino brand, acquires All American Poker Network.
- 2015: Acquired Wink Bingo in 2015, enhancing its bingo offerings.
- 2017: Re-entered the US market through a partnership with Caesar’s Entertainment post-PASPA repeal.
2016-2023: Strategic Moves and Innovations
- 2018: Announces BetBright’s sports betting platform acquisition.
- 2019: Launches Mr Green brand in Germany.
- 2020: Launches proprietary sports betting product and Poker8.
- 2022: Acquires William Hill, sells Bingo business.
- 2023: Launches ESG framework “Made for the Future.
2024: New Strategy and Operational Changes
- March: Appointed a new CEO and CFO, announced ceasing US operations, and rebranded to Evoke Plc.
Financial Overview
The company experienced growth in the UK and Ireland, with a significant increase in revenue from this sector. Nonetheless, it aims to adopt a more sustainable approach in the UK gambling industry.
Its strategy is to create a low-wager sportsbook to generate higher profits. The international market’s revenue increased, but 888 faced regulatory challenges in some markets. Some with notable growth include Spain and Italy.
The company plans to exit unprofitable markets, and the first casualty will be in the US market. 888 is currently operating in four states: Colorado, Michigan, New Jersey, and Virginia. The 888 brand is live in New Jersey. But in other states, it runs sportsbooks and online casinos under the Sports Illustrated brand through a partnership with Authentic Brands Group.
It established that the gross profit margin in the US is lower than the group level. High operation costs in the market, including duties, market access charges, and license fees, are to blame. The company also faces intense competition from well-capitalized incumbent participants. So, the management has decided that exiting the US market is the best decision.
2024 Q1 Finances
In Q1 2024, 888 reported £431m in revenue, slightly above estimates. Revenue decreased by 3% compared to the previous quarter but increased by 2%. 888 expects year-on-year revenue growth from Q2 2024, aligning with its 5-9% annual increase target for 2024.
In the UK and Ireland online division, revenue decreased by 1% year-on-year to £164.4m. Gaming revenue increased by 4% to £101.9m, offsetting an 8% decline in betting revenue, which fell to £62.5m. Despite the decrease in betting revenue, there was a 9% increase in the average monthly active customers compared to Q1 2023.
The company’s international division saw positive sequential growth, with revenue in Q1 2024 surpassing that of Q4 2023 by 6%. After significant compliance changes in February 2024, the segment returned to year-on-year growth, with revenue up 4% in February and March.
Retail revenue decreased 7% to £130.3m, attributed to shop optimization efforts. Q1 2024 revenue remained consistent with that of Q4 2023.
In March 2024, 888 announced the sale of its US online gambling assets to Hard Rock Digital, ending its US B2C operations. The sale is to be finalized by the end of the year, leading to the end of the partnership with Authentic Brands Group.
888 holdings Share Price and Changes
The 12-month price target for 888 Holdings averages £117.00, with a high forecast of £160.00 and a low forecast of £85.00. The average price target shows a 37.00% change from the last price of £85.40.
Gambling Brands Owned by 888 Holdings
Here are some of the brands under the 888 banner:
- 888casino: 888casino, the first legal online casino in the US market, was founded in 1997 and is based in Gibraltar.
- 888poker: Launched in July 2002, 888poker is 888 Holdings’ dedicated online poker room. It’s the best spot for various poker games and tournaments, catering to casual players and serious poker enthusiasts.
- 888sport: Introduced in March 2008, 888sport is the sports betting arm of 888 Holdings. The site is for punters who want to bet on horse racing and various sports leagues from Europe, North America, and beyond. It also supports live betting and pre-game bets. In 2019, 888sport expanded its capabilities by acquiring the sportsbook platform provider BetBright.
- William Hill: Acquired by 888 Holdings in June 2022, William Hill is a renowned international bookmaker with a long history in the betting industry. This acquisition significantly bolstered 888’s presence in the global betting market.
- Bingo Brands: 888 Holdings operates a diverse portfolio of online bingo sites for various bingo specialities. These sites emphasize community interaction through chat rooms and regular competitions. Key brands include 888ladies.com, Wink Bingo, Posh Bingo, Tasty Bingo, RedBus Bingo, Bingo Street, Big Brother Bingo, 888bingo.com, and Bingo Appy.
- Sports Illustrated Sportsbook and Casino: A brand combining 888 and Sports Illustrated offering sports betting and casino products. The brand is live in Colorado, Michigan, and Virginia, with the casino product launched in Michigan in February 2023.
Biggest Competitors in the Industry
Bet365 and 888 Holdings are giants in online gambling. Bet365 provides various sports and live betting options with advanced live streaming. Bet 365 takes 888 head-on variety, but the former can benefit from 888’s expertise in poker and online casino games.
Entain plc, previously known as GVC Holdings, is a major global company in online gambling. It offers everything from bookmakers to casino classics, poker, and bingo. The company is based in the UK and owns popular brands like Ladbrokes, Coral, Bwin, and Partypoker. Entain has a strong presence online and in traditional retail outlets, especially in the UK.
Flutter Entertainment owns popular brands such as FanDuel and PokerStars. If 888 Holding is leaving the US market, it’s probably because of Flutter Entertainment’s FanDuel.
Conclusion
888 Holdings, now operating as Evoke plc, has evolved significantly since its founding in 1997. It expanded from a startup in the unregulated online gambling sector to a multinational powerhouse in the industry. Regulatory challenges and competition pressures notwithstanding, 888 continues to innovate across its digital platforms.
Besides its diverse portfolio and newly acquired William Hill, it has rebranded to Evoke plc. The possible sale of its US B2C operations is to shed off deadweights. These moves not only highlight its commitment to sustainable growth but also its market adaptability.