Time To Restructure – 888 Gambling Group Lays Off Dozens 

888 is undergoing a significant organizational restructuring, resulting in the termination of several employees in Israel.

The gambling group 888 is undergoing a significant organizational restructuring, resulting in the termination of several employees in Israel. With a workforce of 11,000 individuals, 888 had previously implemented job cuts in Israel in January of the preceding year. The international betting and gambling company, which owns renowned brands like UK bookmaker William Hill, 888, and Mr Green, unveiled a savings plan aiming to achieve £30 million ($37 million) in reductions. The company highlighted an 8% decline in total sales for 2023, decreasing from £1.8 billion ($2.2 billion) in the previous year to £1.7 billion ($2.2 billion) in 2023.

A name that needs no introduction within the online gambling scene, 888 Holdings has built its solid reputation through its selection of brands: which includes (but is not limited to): 888poker, 888sport and, of course 888casino. In fact, top affiliate site NoDepositCasino.guide has a great review about their offerings.

Ongoing Financial Crisis

Israel’s technology and gambling sectors are grappling with a profound impact amid the ongoing conflict, as the number of mergers, acquisitions, and initial public offerings (IPOs) has plummeted to the lowest point in a decade. According to the 2023 Israel High Tech Exit report by PwC Israel, the value saw a drastic 56% decline last year, dropping from $16.9 billion to $7.5 billion compared to the previous year. Simultaneously, the number of deals experienced a 38% decrease, falling from 72 to 45, with the average deal value declining by 29% from $235 million to $167 million during the same comparative period.

The persistent financial decline has led to notable workforce reductions in several companies. Healthy.io, an Israeli MedTech firm established by entrepreneur Yonatan Adiri, implemented layoffs for approximately 70 employees, amounting to a third of its workforce. Moreover, gaming industry leader Unity, which acquired ironSource for about $4.4 billion in 2021, declared a third round of layoffs, impacting numerous employees in Israel.

While the downsizing of companies aligns with a global trend, Israel faces added uncertainty due to the potential legislative changes the government is contemplating. The ongoing war further adds to this uncertainty, impacting the future of 888 in Israel, which joins the list of companies experiencing substantial financial challenges as a result of the conflict.

Declining Revenue

It’s no secret that 888’s revenue suffered a significant blow due to the UK’s efforts to enforce stricter regulations, aiming to create a safer gambling environment for players. This heightened scrutiny is set to persist throughout 2024, with the UK seeking to fortify regulations on betting companies and provide increased support for individuals vulnerable to problem gambling.

In the first three months of 2023, the company experienced a 9% drop in online gambling. Despite a decrease in revenue from high-spending players, this was offset by the growing number of low-spending players. In its trading update, 888 acknowledged the impact of changes to gambling legislation, stating that revenue was additionally affected by shifts in customer demographics in the UK. This was attributed to supplementary Safer Gambling measures and the Group’s adjusted marketing strategy, emphasizing sustainable revenue and profitability.

Nevertheless, this decline was partly mitigated by the revival of retail gambling and favorable company performance in Spain and Italy. It’s worth noting that the UK is not the only EU nation enhancing existing rules related to gambling legislation; Italy recently announced a series of changes earlier this month. However, the move by the Economy and Finance (MEF) department of the Italian Government has faced criticism from Italian gambling agencies for being excessively expensive.

Additional Setbacks

Last year, William Hill was hit with a historic fine from the Gambling Commission for allowing 

certain customers to rapidly open accounts and spend substantial amounts, amounting to tens of thousands of pounds, within a matter of minutes or hours.

Despite facing a £92 million fine for failures in social responsibility and anti-money laundering, the anticipation is for profits to exhibit a significant year-on-year increase. In the 2022 financial year, pre-tax profit reached £217.9 million. However, profit margins were somewhat impacted, partly due to investments in online player safety measures in the UK.