888 Holdings is turning in their bingo cards. The gaming operator announced yesterday that it is selling its B2C and B2B bingo businesses to a UK company so it can focus on its core business and US growth. 888 Holdings CEO Itai Pazner, pictured above. He is leading the company in new directions as it focuses on its core businesses and US growth. (Image: Gaming Intelligence) Online bingo isn’t a huge money-maker for most operators, even if it helps them fill out their list of options.
Still, it requires resources for it to be maintained properly, and 888 wants to use those resources elsewhere. It has reached an agreement to sell the segment to Broadway Gaming Group’s Saphalata Holdings Ltd for US$50 million.
The deal with Broadway gives the latter the entire package – 888’s exclusive technology, its assets and all related brands. While the segment may have helped shore up operations during COVID-19, the company feels that it’s time to move back to its online betting and gaming options.
“By combining these with our existing business and brands, which include ‘Butlers Bingo,’ we will be able to achieve an even stronger global footprint in key regulated bingo markets,” Broadway Gaming CEO David Butler said. All Cash Offer
Broadway is making the purchase through a cash- and debt-free deal, according to the announcement. When the sale is complete, the buyer will pay the $50 million, with another $4 million in potential earnout payable within six months after closing.
The arrangement is expected to finalize sometime during the second quarter of next year. However, it will only be possible if Saphalata is able to secure a license for the new assets in the UK.
Broadway already operates a number of licensed bingo sites. The company is behind Bingo Diamond, Butlers Bingo, Casino of Dreams, Dotty Bingo and others. 888 Redirecting Energy to US Market
Some operators feel that offering bingo is a viable option. Flutter Entertainment announced last month that it was going to purchase UK-based Tombola Limited for over US$541 million.
But 888 is looking to expand its other operations instead. […]
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