888 and Sports Illustrated call it quits

Bengaluru — British bookmaker 888 Holdings said on March 6 it had terminated its deal with Sports Illustrated and was looking at options to sell or exit its direct-to-consumer US operations, due to intense competition and low margins.

Sports Illustrated (SI), known for its eponymous sports magazine, had entered the online betting market in an exclusive deal with 888 in 2021 in a bid to entice SI fans.

Sportsbetting in the US has taken off in the past few years since it was legalised in 2018, with players in the country partnering up with or buying out British gambling groups that have more experience in that field.

But it has been a long road towards profitability for many sports gambling groups, including market leader Flutter-owned FanDuel, which turned profitable for the first time only in 2023.

“In the US, the intensity of competition and requirement for scale means huge investment is required to reach profitability,” 888 CEO Per Widerström said in a statement.

BetMGM, jointly owned by Ladbrokes-owner Entain and MGM Resorts, made its first profits in the second half of 2023.

888, which is active in four US states, said it was terminating its agreement with SI-parent Authentic Brands and would pay a termination fee of about $25m. 

The termination is expected to help save 888 about $6m-$7m a year in 2024 and 2025, it added.

Reuters