An online legal sports betting operator is back on track after a fiscal year of ups and downs.
888 Holdings — the parent company of online sports betting sites including William Hill — generated $1.53 billion in revenue in FY2022, up from $881 million for the fiscal year prior. The company’s adjusted EBITDA reached $272.52 million in 2022, an 82% increase year-over-year.
888’s growth in revenue in FY2022 was attributed to the company’s acquisition of William Hill. In July 2022, 888 completed its purchase of William Hill’s non-U.S. assets from Caesars Entertainment in a deal valued at $2.4 billion. 888 executed the deal with $1 billion in cash.
The purchase of William Hill’s non-U.S. business improved 888’s revenue but also widened losses. In FY2022, 888 reported a pre-tax loss of $143 million, compared to $72 million the year prior.
888 expects losses to continue in FY2023 as the company continues to expand operations in emerging markets worldwide. It anticipates a low to mid-single-digit decline in revenue in 2023.
888 also saw its ability to drive profits hindered by an investigation last year that found the company failed to prevent money laundering by VIP customer accounts in the Middle East. As a result of the probe, 888 was ordered to pay a record $24 million fine by U.K. regulators.
Another New Property
In 2021, 888 reached an agreement to secure exclusive rights to the Sports Illustrated brand for online sports and casino wagering. The transaction included Authentic Brands — the owner of SI — purchasing a 4.9% stake in 888’s U.S. business that could increase up to 19.9%.
The deal, which lasts for up to 20 years, also includes the opportunity for 888 and SI to open brick-and-mortar sportsbooks across the U.S. SI Sportsbook is currently live in Colorado, Michigan, Virginia, and Ontario. It also plans to expand to Indiana, New Jersey, and Iowa.
