Join our community of smart investors

Move over America – there's a new gambling market in town

888's retreat from the US shows how competitive the market has become, and investors would be wise to turn their attention elsewhere
March 12, 2024
  • The US market is dominated by a handful of operators
  • Brazil is a newly regulated sports betting and gaming market

William Hill owner 888 (888) announced last week that it could sell its US business-to-consumer (B2C) unit, highlighting the difficulties smaller operators face in high-growth markets across the Atlantic. But investors' understandable US focus shouldn't obscure the rising opportunities south of the border.

The company's strategic review could lead to a B2C exit from four US states, and it has terminated an agreement with Authentic Brands Group to use its Sports Illustrated moniker, at a cost of $50mn. In 2023, its entire US business only generated around £20mn of revenue and recorded an adjusted Ebitda loss of £12mn, according to Jefferies' estimates.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in