The online poker industry in the United States continues to grow and expand, and the big operators are looking to make a move. Hard Rock Digital is not typically considered one of the biggest names, but it could be looking to join that top group.
888 Holdings was one of the first to enter the United States, and it can take some credit for really getting this industry up and running. After seeing a dip in some numbers over the last few years, 888 Holdings has announced that it is leaving the United States completely.
This company had a ton of U.S. assets to get rid of before heading out of the country, and it has now found a buyer. Hard Rock Digital has agreed to purchase all of the U.S. assets, and that could allow the buyer to make some big moves throughout the United States.
One of the biggest reasons that Hard Rock was interested in these assets is it will now have market access in the state of Michigan. Hard Rock is currently operating in seven states throughout the country, but a bigger footprint is important to leaders of the company.
888 Had to Get Out
This move from 888 Holdings was expected as the company was clearly losing too much money in the United States. Things started to unravel back in January of this year when it gave up market access in Delaware, and it was the only license holder in the state.
Delaware was not seeing big results with 888 Holdings holding on to that license, and it instead partnered with Rush Street Interactive. Rush Street was then able to secure a deal with Rhode Island, and that company was thriving in the absence of 888 Holdings.
Online poker players were not happy when 888 lost out on the contract in Delaware as it eliminated some poker opportunities. There was a deal in place with WSOP.com and that allowed for shared liquidity between Nevada and New Jersey as well.
Even though this company can be credited with getting things up and running in the United States, it became clear that things just weren’t working. The purchase price for this sale has not been made public, but 888 Holdings is going to get a great deal.
According to company executives, this sale will save the company more than $30 million each year, and that money can then be reinvested back in the UK.
Hard Rock Has Plans
Hard Rock Digital has had a strange few years, and they are still stuck in a legal battle with the state of Florida. This company is more known for offering an online sportsbook, but it can easily make the transition to the online casino industry as well.
These U.S. assets of 888 Holdings will also give this company some new technology that can be used to improve the sportsbook and online casino. This move could also encourage Hard Rock Digital to be even more aggressive moving forward.
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