The sale is scheduled to be completed in the second quarter of next year only if Bingo is reorganised and the new structure receives its own licence to operate under British laws.
As per the agreement, 888 will prove Broadway several transitional services for a period of up to one year from completion, according to an agreed fee schedule.
The 888 Group decided to sell the bingo business in an effort to improve its focus on the core platform, thus enabling greater resources to drive growth in its core markets.
Itai Pazner, 888 CEO, commented: “Following a strategic review, we have taken the decision to sell the bingo business. This strategic transaction will enable 888 to further increase its focus on its core platform and unified, scalable and proprietary technology, and grow our key product verticals of the casino, sport and poker, as we continue in our mission to be one of the world’s leading online betting and gaming businesses.”
David Butler, CEO of Broadway Gaming, added: “We are delighted to reach an agreement with 888 to acquire its bingo business and platform. By combining these with our existing business and brands, which include ‘Butlers Bingo’, we will be able to achieve an even stronger global footprint in key regulated bingo markets.”
In September 2021, 888 purchased Willian Hill’s non-core business outside the US from Caesars. Thanks to that acquisition, 888 gained access to two million active users in Britain along with 1,400 betting shops.
The bingo business generated revenue of approximately $65m and EBITDA of $7.4m for 2020.