888 eyes long-term US gains after European focus pays dividends
CEO Itai Pazner admits operator still has more to give in the US and insists it is not too late to win market share
888 CEO Itai Pazner admits the operator’s focus on European growth has diverted it from making inroads in the US market.
Speaking exclusively to EGR, Pazner highlighted 888’s strong growth in Europe, driven by a 36% Q3 revenue rise across EMEA, but admitted there was much more work to be done across the pond.
“Have we been agile enough?” asked Pazner. “Listen, we are not where we want to be. We have been focused in the last few years on developing our core products in core markets including Europe.
“We’ve managed to deliver significant growth in those markets, alongside enhancing our products in the three main categories—casino, poker, and sports betting–and we’re launching brand new products in each one of those categories.
“Obviously, you can’t do everything at the same time, and one of the things that hasn’t developed as much is the US market.
“We’re in a much better position in the US in terms of gaming than we are in sports betting, but we need to make much more progress in both of them,” the 888 CEO added.
A key weapon in 888’s new arsenal of products is proprietary sportsbook technology platform Spectate, which has successfully launched in Sweden amid 123% revenue growth for Q3.
The operator has confirmed it will launch a UK version by the end of 2020 and a US debut in 2021, with 888 planning to expand other verticals into the market.
“The next steps will be to leverage all of these assets that we have invested in over the last few years in our three core products. We will look to bring these into the US and offer them in coordination with a new infrastructure that we’re in the process of creating,” Pazner explained.
EGR understands the new infrastructure encompasses a modular back-end platform, boasting the group’s Orbit online casino, Poker 8 platform and Spectate sportsbook, allowing 888 to launch much faster into new markets, including the US.
Pazner revealed 888’s ambition to launch expanded operations in up to 20 US states over the next three to four years as it looks to gain ground on more established players including FanDuel, DraftKings and GVC’s JV with MGM, Roar Digital.
The 888 chief highlighted states which already operate both online gaming and sports betting as a priority, due to their value, but suggested other states would also be targeted for expansion.
“We definitely recognise the size of the US opportunity and I think it’s far from being too late to take advantage of that,” said Pazner. “There are many states that have gone through sports betting licensing processes but haven’t opened up to online gaming.
“Even the ones that have opened up are still in the very early stages, and some of them are evolving from sports to online gaming. For me, there’s still a lot of headway to be made in the US and I think the market is far away from being set at where it is today,” he concluded.