The US iGaming market continues to grow at an impressive rate, and this is also a key driver of global growth and expansion.
Because of this, a number of global gambling brands are continuing to establish a dominant market position stateside, with William Hill and 888 Holdings leading this charge.
888 Casino NJ and similarly branded entities are now among the safest and best platforms in the market, as explained in this guide. But how is the brand revamping its broader strategy to optimize success in the US marketplace? Let’s find out.
What’s the Latest News for 888 Holdings?
Recently, 888 Holdings held its ‘Capital Markets Day’ (CMD), with the company taking this opportunity to discuss a broad range of topics.
The biggest item on the agenda was undoubtedly the brand’s growth and further expansion. As the brand has already successfully expanded into the global markets, now the next step is increasing its presence in more regulated US markets.
The need for strategic thinking in this regard is pressing, thanks largely to the unique nature of the North American marketplace. For example, while the US market is relatively immature and holds incredible growth opportunities, it’s also highly competitive and open to a growing number of international operators.
It’s also important to note that the brand has been operating in the US for more than a year, primarily through its Sports Illustrated Sportsbook brand.
As a result, 888 Holdings has leveraged first-party data and insights to identify new and potentially lucrative market opportunities, while this has also caused the company to revamp its existing international growth strategies.
While the initial plan sought to establish 888 Holdings as “a nationwide sports-led operation in between 12 and 15 states”, the company has created an evolved strategy named “Betting 2.0” in a bid to negate the intense competition it would face within the sports betting vertical.
Why iGaming Represents Better Value Than Sports Betting
Since the US Supreme Court struck down the controversial PAPSA legislation in May 2018, individual state authorities have been free to legalize sports betting.
So far, more than 20 US states have taken advantage of this and transformed sports betting into a legal, regulated, and taxed activity, while others intend to follow suit through 2023.
However, it’s thought that the less mature iGaming market (which is currently only available in six US states) is almost as big as the sports betting alternative, despite the latter now comprising revenues from 22 state authorities.
This has been uncovered by 888 Holdings’ research, meaning that placing a greater focus on the iGaming US niche could result in increased returns for the brand while simultaneously reducing risk and the prevailing levels of market competition.
Additionally, 888 Holdings will also change its approach to target customers within the sports betting marketplace.
More specifically, it intends to become more focused by targeting the older male demographic stateside, with this segment thought to spend between four and six times more than the ultra-competitive younger demographics.
In addition to having more disposable income, the older male demographic is also more inclined to play online casino games in the US, so 888 Holdings will be able to target a much more motivated and engaged audience over time.
Ultimately, the goal here is to promote the Sports Illustrated Sportsbook to an older and financially independent customer segment, with this influencing everything from the brand’s content strategy to the 888casino bonus that it publishes to incentivize players.
The Last Word – Can 888 Holdings’ Strategy Deliver Results?
In total, the online gambling market was worth $2.65 billion in 2021, while the sector is forecast to grow at a CAGR of 16.4% over the course of the next six years before peaking at a value of $7.61 billion by 2028.
However, while online casino revenues are currently lower than the sports betting alternative, the scope for iGaming growth is huge.
To provide some context, New Jersey’s online casino platforms generated a staggering $144.9 million in revenue during October 2022 alone, while this isn’t even the best monthly performance for the state.
It’s this type of figure that seems to justify the recent changes to 888 Holdings’ US growth strategy, which are considerably more focused on the iGaming vertical than before. Rather than emphasizing sports betting and answering questions such as ‘is 888casino safe?’, it will look to leverage high-growth niches and establish a clear competitive edge over its rivals.
This has also informed changes to the brand’s core target demographic, as it looks to reach older and better-resourced players who are known to have a penchant for online casino games.
Of course, time will tell whether or not the strategy is successful, but it’s easy to see the reasoning behind 888 Holdings’ decisions and how they intend to grow their business in the US.
