The Power of a Name: This rhetorical question, famously posed about 400 years ago, resonates even more in today's world. In an era where image and brand recognition drive sales and social media influence, a name holds immense value. 888 Holdings, struggling with years of poor performance and setbacks, is now striving to revive its past prominence. The company aims to recapture the days when it was valued at an impressive $20bn (£15.68bn).
Rebranding and Reboot
Now, if someone wants to buy the British gambling leviathan, they could acquire it for a third of its former lofty valuation. Earlier this month, in May, new 888 Holdings CEO Per Widerström, who replaced the dynamic and long-serving CEO Itay Pazner following a boardroom coup in January 2023, announced a significant change: William Hill, Mr Green, and many other companies under 888 Holdings will now be consolidated under the name Evoke.
This rebranding is part of a comprehensive reboot spearheaded by Widerström to rescue the British betting giant from substantial debts and a flawed business strategy. For instance, in September 2021, 888 paid Caesars Entertainment the same amount for William Hill's international assets as the American powerhouse did for the entire "blue British blood" company the previous year—about £2.2 billion ($2.8 billion).
Losing Trade
The deal, struck at the end of the COVID-19 lockdown and amid rising interest rates, proved to be a failure. Most gaming industry observers labeled it as "really bad." Crucially, the deal saddled the already heavily indebted company with even more debt. Consequently, the 888 Holdings/Evoke share price, currently down 3.5%, has yet to recover.
Evoke is a symbol of our new direction," the revamped company stated in a social media post. "A direction that builds on our strengths and allows us to move forward as one multi-brand group with a single strategy and vision. It also better reflects our mission to make life more interesting and delight players with world-class betting and gaming experiences, said Widerström.
The rebranding follows a series of unprofitable financial results and includes a comprehensive exit from the hot US iGaming and sports betting markets. Evoke encapsulates the company's new strategic value creation plan, which aims to concentrate efforts in its "core" markets of the UK, Italy, Spain, and Denmark, collectively generating around 85% of the group's revenue. Last year, income from these countries reached £1.7 billion ($2.16 billion).
Better integration, operational efficiency, automation, and artificial intelligence are expected to save the company around £30 million per year ($38.21 million).
“No” to Working in the USA: Will Rebranding Help?
In the US, Evoke is now effectively "cancelling" its flagship partnership with Authentic Brands Group, which granted it exclusive use of the Sports Illustrated brand for online betting and gaming in America. The UK-listed company joins a long list of other operators, including Wynn, PointsBet, Kindred, Fox Bet, Churchill Downs, and others, that have struggled in the intense competition of the US digital market.
888 Holdings has adopted a new name and strategy. However, rebranding doesn't always guarantee success. Notable examples include the British Royal Mail's failed rebranding attempt as "Consignia" in 2001 and Standard Life Aberdeen's transformation into Abrdn (probably inspired by Irn Bru). These cases highlight the challenges and potential pitfalls of rebranding efforts.
Imagine a scenario where 888 Holdings/Evoke is acquired by someone like Kenny Alexander of GVC Holdings, whose current company FS Gaming has been vocal about such possibilities. Alexander's bid to return as CEO of a major gambling company was quickly dismissed. GVC, which rebranded as Entain to distance itself from its past and controversial associations with money laundering in Turkey, is another example of a company betting on a name change to forge a new path.
As Evoke embarks on this new chapter, we can only wish Per Widerström and the company the best of luck in the competitive world of iGaming.
