UK-based 888 Holdings has announced its 888Poker and its 888Casino NJ app will be shut down in New Jersey, continuing its exit from the North American market.
Farewell New Jersey
The withdrawal of 888Poker from the New Jersey market will hardly leave a ripple as the app was responsible for just 0.006% of the state’s online poker revenue this year and in March accounted for only 0.67% of New Jersey’s online poker market. The company is also pulling the plug on its online casino app, 888Casino, with both scheduled to shut down on June 3rd of this year.
This is not surprising news as 888 CEO Per Widerström had mentioned a possible sale of its U.S. assets in an FY 2023 earnings call in late March, saying, “I look forward to updating you on the outcome of this [sale] as soon as we can.”
Therefore, the announcement coupled with the anemic performance of its digital gaming products in the domestic market was expected, but the termination date and buyer of those assets were the only pieces of the puzzle missing. It is the first online poker app to terminate operations in the Garden State since Ultimate Poker and Betfair decided to pull up stakes and leave back in 2014.
“In the U.S., the intensity of competition and requirement for scale means huge investment is required to reach profitability,” noted Per Widerström. “We have concluded that achieving sufficient scale in the U.S. market to generate positive returns within an accelerated timeframe is unlikely.”
Despite 888Poker’s exit from the New Jersey market, there will be no dearth of choices as five other active online poker sites are still available including WSOP.com, PokerStars NJ, Partypoker NJ, Borgata Poker, and BetMGM Poker. We should also note that the tri-state cooperative poker agreement between New Jersey, Michigan, and Nevada is still on course and will not be affected.
Hard Rock Digital Buys 888Poker
The Seminole Tribe of Florida’s Hard Rock Digital brand will be buying 888Holding’s U.S. assets, which includes its New Jersey apps. Financial details of the sale were not disclosed but the deal is expected to consummate by the end of 2024. And for those who are wondering if Hard Rock Digital will bring back poker under its platform, the early word is that it will not.
The main asset for the new owners would appear to be 888’s online casino app and its customer base which will likely be integrated into the Hard Rock Digital platform. It should also be pointed out that 888 Holdings has also extinguished its Sports Illustrated licensing deal, which saw the company deposit $25 million on the front end with the remaining $25 million due at a later date.
888 Holdings has announced a “Value Creation Plan” which will rebrand as “Evoke Plc” and will focus its attention on its primary markets including the United Kingdom, Italy, Spain, and Denmark. Although it is withdrawing from the B2C U.S. market, the company has stated it will not interrupt its B2B division in the States.
