888 Holdings PLC (LON:888) said it has an exclusive partnership with Authentic Brands Group (ABG) to develop online sports betting and iGaming products under the Sports Illustrated brand, one of the most famous sports magazines in the US.
The FTSE 250 firm said it expects to kick off the partnership with the launch of a new Sports Illustrated wagering experience, branded as SI Sportsbook, in Colorado in the second half of 2021 which will be followed by other US states.
READ: 888 Holdings' revenues soar as lockdown effect offsets tighter regulation
Under the deal, ABG will grant 888 an exclusive licence to use Sports Illustrated branding and trademarks for online sports betting and iGaming, as well as certain exclusive advertising and editorial integration rights on select Sports Illustrated branded digital assets.
In return, ABG will receive brand licence and affiliate fees and a minority passive interest in 888, with the company adding it has also agreed to a minimum annual advertising commitment on certain ABG media assets.
"We are thrilled to announce that Sports Illustrated is entering the online sports betting and iGaming space. Sports wagering represents a large and high-growth market, allowing us to diversify the brand's revenue streams and engage directly with our sports consumers, broadening the reach of the brand. 888 is one of the leaders in online betting and gaming globally and has outstanding technology, products and marketing capabilities, and we are excited to partner with them to offer an innovative product experience for sports fans", ABG founder, chairman and chief executive Jamie Salter said in a statement.
"We are delighted to announce this strategic partnership, enabling us to accelerate our investment into the U.S., which represents one of the most exciting long-term growth opportunities for our company. Sports Illustrated is an iconic sports media brand, with high awareness and consumer loyalty. This agreement provides us access to millions of engaged sports fans across the U.S., giving us a high-volume and cost-effective customer acquisition channel, and great content to engage sports fans. We are excited about the potential to deliver our cutting-edge, proprietary sportsbook platform into the market, providing Sports Illustrated fans with a first-class betting and gaming experience", added 888 CEO Itai Pazner.
In a note, analysts at Peel Hunt, which rate 888 at ‘buy’ with a 500p target price, said the partnership was “consistent with management’s plans to expand its US business in 2021 after a period of investment in its technology capabilities” and they expected the company’s US potential to “find its way into its share price within the next 12 months”
Shares in 888 jumped 2.2% to 402.9p in early deals on Thursday.