888 offloads B2C and B2B bingo business to Broadway Gaming in $50m deal
The sell-off, which could include a potential earnout of up to $4m, will encompass 888’s entire bingo business, including its exclusive technology, assets, operations, B2B clientele and consumer-facing brands.
888’s bingo business is predominantly UK-based and generated 2020 revenue of around $65m and EBITDA of $7.4m. The loss before tax in 2020 was $76.4m, including a goodwill impairment of $79.5m.
888 has agreed to provide Broadway with certain transitional services for a period of up to 12 months after completion, in accordance with an agreed fee schedule.
The London-listed firm took the decision to offload the bingo business following a strategic review, which concluded a sell-off would allow greater focus on the core platform and core markets including the US, at the same time as reducing compliance complexity.
Completion is expected in Q2 2022 but is still conditional on the Gambling Commission awarding a separate licence to the restructured bingo business.888 CEO Itai Pazner said: “This strategic transaction will enable 888 to further increase its focus on its core platform and unified, scalable and proprietary technology, and grow our key product verticals of casino, sport and poker, as we continue in our mission to be one of the world’s leading online betting and gaming businesses.
“The high-quality bingo business has been an important part of 888’s history, and over many years we have developed an advanced B2B offering alongside a suite of popular consumer-facing brands.
“As part of an enlarged business, I am very confident that the future for the bingo business is bright. I would like to express my immense gratitude for all of the hard work of the team over the years,” he added.
Broadway Gaming currently operates five bingo brands in the UK, including its flagship Butlers Bingo site, and two casino brands. It is also licensed by the Malta Gaming Authority (MGA) for international operations.
Broadway Gaming boss David Butler said: “We are delighted to reach an agreement with 888 to acquire its bingo business and platform.
“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.
“We see significant further expansion opportunities in both the B2C and B2B segments and are very excited about our plans for the future, as we work closely together to become the pre-eminent online bingo business globally,” he added.