888 Holdings Reports Solid First Half of 2016
Operating online gaming options across the world, including in the United States, 888 Holdings has been able to report a solid first half in earnings for 2016.
After failing to do well within the first half of 2015, 888 Holdings has reported solid revenues numbers for the first six months of 2016. The brand has tried to takeover William Hill along with the Rank Group this year, but failed to do so. With acquisition and merger options still being considered, the brand now focuses on how well they did within the first half of this year across the globe.
Winning in Sports Betting
For 888 Holdings, their top product for the year seems to be sports betting. This category of gaming is relatively new for 888 but has continue to well. The sports betting arm of 888 Holdings is known as 888sport and for the first six months of the year was able to produce $25 million in revenue earnings. This is 63% more than the same time frame in 2015. Sports betting has actually moved past bingo for the brand in regards to overall earnings. 888 believes the boost in sports betting earnings is due to strategic focus and marketing investments of the company.
For marketing, 888 has spent $90 million for the first six months as compared to $67 million. Customer recruitment for sports betting was actually up 82% due to the increased marketing campaigns. Growth has also continued for the company thanks to an expansion into nationally regulated markets.
For sports betting, the brand was able to see an outstanding performance due to Euro 2016. Launching in Spain back in 2014, Denmark in 2015 and Italy for this year has certainly helped with revenue earnings for 888sport. Euro 2016 gave sports books across the board a boost as fans wanted to get in on the action.
888 in the United States
888 operates in several areas of the world including the United States. The majority of the brand is focused in the United Kingdom and Europe however the brand does offer services in the United States. In the US, 888 operates online gambling activity under their own name as well as providing a gaming platform for the WSOP.
888 Holdings has yet to launch in Nevada with their own brand but does operate WSOP in the state as well. The company is also providing services in Delaware, offering software for all three racinos that provide online casino and poker gaming services to residents and visitors to the state. According to 888 Holdings recent filings, the trading in the United States has been within ‘expectations’. This basically means the company has not been able to see impressive numbers as they would like to see.
Shared liquidity between Delaware and Nevada was thought to be an option to help the brand see more revenues for gaming but that has not particularly been the case. On that note, 888 Holdings stated that they are benefitting from the launch of the shared poker player liquidity between Delaware and Nevada from the first half of the year an believe that pooled liquidity arrangements will be a key feature if states legalize gaming in the future.
888 believes their current position in the US market sets them up to be able to capitalize as future regulatory developments are made. The company will already have a foothold in the US as well as experience which will only be beneficial for new operators.
For now, 888 will continue to focus on every area of gaming they provide including casino, poker and sports betting, among other options. It will be interesting to see how the brand fares moving forward into the last six months of the year.