888 Holdings has announced the sale of its bingo business to Broadway Gaming for a total consideration of £60 million.
888 will receive a cash consideration of £32 million upon completion of the sale, with a deferred payment of up to £28 million due in 2021, depending on the performance of the bingo business over that period.
The news is guaranteed to turn some heads in the online gaming industry as 888 had only recently acquired the bingo business from Daub Alderney for £45 million. 888 will now be taking a loss on the sale of the business, although it is worth noting that 888 has said that the deal is “strategically compelling” and will allow them to focus on their core casino and poker businesses.
Though it is unlikely that 888 Bingo will go away entirely, those concerned that this is a possibility can enjoy lots of sister sites if this does ever come to pass.
In this article, we will take a closer look at 888 Bingo, Broadway Gaming and the future of online bingo off the back of this major development.
So, without further ado, let’s first take a look at 888 Bingo, a hugely popular site that continues to draw in the crowds.
What is 888 Bingo?
888 Bingo is one of the most lucrative and popular online bingo sites in the world and has been going strong since it was first launched in 2002. The site is owned by 888 Holdings, a publicly listed company on the London Stock Exchange.
The 888 Bingo site is powered by Dragonfish, which is the proprietary software platform of 888 Holdings. The site offers both 75-ball and 90-ball bingo games, as well as a wide range of side games such as slots, scratch cards and casino games.
888 Bingo is licensed by the UK Gambling Commission and the Gibraltar Gambling Commission, two of the world’s most respected of all authorities.
What does the sale mean for 888?
The sale of 888’s bingo business to Broadway Gaming is a sign that the company is looking to focus on its core casino and poker businesses. 888 has been one of the biggest players in online gaming for many years and this move will allow them to sharpen their focus on what they do best.
The cash consideration of £32 million will be used by 888 to reduce debt and increase financial flexibility, which is always welcomed by shareholders. 888’s share price was up by over 8% on the news of the sale, which goes to show that investors are behind the move.
What is Broadway Gaming?
Broadway Gaming is a privately owned online gaming company based in Malta. The company was founded in 2009 and has since gone on to launch a number of successful online bingo and casino brands.
Broadway Gaming’s flagship brand is Butlers Bingo, which was launched in 2010 and has since become one of the most popular bingo sites in the UK. The company also operates a number of other well-known brands such as Dotty Bingo, Glossy Bingo and Rehab Bingo.
What does the future hold for 888 and Broadway Gaming?
Only time will tell how this move will pan out for both 888 and Broadway Gaming but, on the face of it, things look very positive. 888 can now focus on its core casino and poker businesses while Broadway Gaming adds another string to its bow with the acquisition of 888’s bingo business.
It will be interesting to see how 888’s bingo business performs under the ownership of Broadway Gaming but, if Butlers Bingo is anything to go by, 888’s players are in good hands. Either way, this is a move that is sure to have the online gaming industry talking for some time to come.
888 has sold its bingo business to Broadway Gaming for £32 million. 888 will now focus on its core casino and poker businesses while Broadway Gaming adds another arrow to its quiver with the acquisition of 888’s bingo business.
Gamers will be sure to be concerned by the shift, due to the fact that 888 is such a popular online site that is beloved and trusted by many thousands of gamers everywhere. However, this is one site that will surely be sticking around for some time yet, having built up some cache down the years with bingo players from all over the planet.
Remember to always gamble responsibly wherever you are enjoying your bingo, it is never a good idea to game more than you are able to afford to! Happy playing and, as always, good luck out there!