10. 888 Holdings (2017)
Welcome to the EGR Power 50 rankings of the online gambling industry’s most powerful operators
In comparison to last year, London-listed 888 had been experiencing a much quieter 12 months until its name was thrown back into the national press once again – this time for all the wrong reasons. In August, the operator was handed a record financial penalty of £7.8m by the British Gambling Commission for “serious failings” in its handling of vulnerable customers.
These failings had enabled thousands of players who had self-excluded from its casino, sports and poker platforms to still obtain access to 888 sites via its standalone Dragonfish bingo platform. Given the level of regulatory scrutiny in the UK currently, combined with the hot topic of self-exclusion, it was clearly a major fault on 888’s part. But just how much damage, if any, it has done to the brand in the long-run remains to be seen.
Looking at 888’s recent financial numbers, there were both positives and negatives for analysts to mull over. H1 revenues were up 9% on a constant currency basis, while adjusted EBITDA also increased 22% to $53.8m. Sports betting was the clear standout performer after revenues soared 45%. The signing of a long-term extension to its contract with Kambi this summer will have come as welcome news and muted previous talk that the operator needed to acquire a sportsbook to compete in the vertical.
Meanwhile, in gaming, online casino revenues continued to increase – up 11% YoY – with decent growth in Italy and Spain helping to offset disappointing performance from the UK market. And it is 888’s formidable gaming business, as well as its CRM and digital marketing capabilities, that continue to make it such a standout operator and potential mega-merger partner. Could 2018 be the year 888 finally gets a deal over the line?
Taking all the above into account, 888 retains its prestigious top 10 position in this year’s rankings, and maintains clear daylight between itself and Jackpotjoy plc. However, the operator slips one place below Betsson in what seems like interchangeable positions between the two companies at the bottom of the Power 10.