Michigan gamblers can continue to play on SI Casino a little longer than they thought. The site, originally expected to be shutting down around now, has seemingly received a reprieve for a few months. A report issued by Evoke, (formerly 888 Holdings), the owner of SI Sportsbook, indicates that the company’s departure from Michigan will occur in the first quarter of 2025, not the fourth quarter of 2024 as initially projected.
The London-based company has already closed operations in New Jersey, Virginia and Colorado. Its withdrawal from the American sports-betting market has been steadily unfolding for months. The process began in March, when, as 888 Holdings, the company sold selected B2C assets to gaming industry giant Hard Rock. The acquisition encompasses regulatory approvals and is set to unfold in phases.
In May, 888 was re-branded as Evoke. It owns outfits such as 888casino, 888poker, Mr. Green, and William Hill.
SI Sportsbook & Casino: a Short-Lived Experiment
SI Sportsbook struggled in the United States. It peaked at 1.2% market share in March 2023, the first full month after its launch, according to industry reports. Since announcing its shutdown, it has slid from about 1% of the market to about 0.5% and the last time it made over $1 million in a month was in May.
Without a brick-and-mortar property or major industry giant to partner with, SI faced a stiff financial headwind. Sports betting already is a low-margin business. There is no room for reduced market share.
A major casino partnership, by contrast, can soften that blow by delivering a string of amenities: comp rooms, cross-promotion, free shows, restaurant reservations and discounts on merchandise on its property. It can also position itself as a getaway destination. SI Sportsbook did not have that major link.
Evoke CEO Per Widerstrom expressed optimism of future profit coming from products within a casino, as opposed to an entire operation. He said Evoke has received positive feedback from a series of product launches. They include the all-new Betbuilder and Impact Sub, and a new William Hill Vegas app with an extended range of games and promotions.
He also touted improved functionality on the William Hill app with a relaunched home page and simpler navigation resulting in improved ease of use:
I have now been in position for a year, and I am pleased that the turnaround of the business is working, with the first quarter of revenue growth since Q1 2022 and positive underlying trends. We are achieving our plans to improve trading in the short term, while simultaneously radically transforming the Group’s capabilities for the long-term.
Widerstrom literally has a vested interest in this development. He purchased 900,000 of stock for GBP 495, roughly $542,000 back in August. The executive team brought 1.3 million shares. Amid that backdrop, under-performing assets will be cut.
Hard Rock is expected to fill the SI Sportsbook slot in Michigan. But if that doesn’t happen, other operators like Caesars would be logical players. Caesars bought out WynnBET’s license earlier this year and launched Horseshoe Casino last month.
US Market Has Been Hard on Newcomers
The struggles of SI Sportsbook mirror a larger trend in the industry. Several states have experienced a contraction in their markets. New Jersey lost WynnBET and Tipico, for example, over the last 18 months.
In 2022, MaximBet, which tried to put it itself at the forefront of the sports and entertainment worlds, exited the U.S. market. So did FuboTV, which banked unsuccessfully on a grandiose vision of sports gambling enhancing the TV business.
In 2023, Penn Entertainment ended its Barstool partnership in what eventually led to the formation of ESPN Bet. The alliance between gambling brands and media brands focused on a young male audience did not meet expectations.
ESPN, meanwhile, sports numerous revenue tentacles. It was paid a reported $1.5 billion in a deal to re-brand Penn Entertainment. The company has a massive television network, among other verticals, to promote its sportsbook involvement.
Finding the right partnership is the name of the game for operators and sportsbook venues. In September, Fanatics announced the opening of a retail sportsbook location in partnership with Ocean Casino Resort in Atlantic City.
The Fanatics Sportsbook at Ocean Casino Resort is located inside The Gallery – a dynamic 12,000 sq. ft. gaming and bar experience that serves as the centerpiece of the casino. The venue officially opened to the public on September 5 in time for the football season. Ocean also has an online site, betOcean.com, that promotes the sportsbook and its brick-and-mortar property.
Launched in 2021, Fanatics Betting and Gaming is the online and retail sports betting subsidiary of Fanatics Holdings Inc., a global digital sports platform. The Fanatics Sportsbook is available to nearly 95% of the addressable online sports bettor market in the US, including Michigan.
It has 21 retail sportsbooks outside of Progressive Field and Nationwide Arena and the only sportsbook inside an NFL stadium at Commanders Field.
The synergy between these two companies may become a success blueprint for the industry.
