Releasing its Q3 financial results recently, Evoke hinted at its plans to abandon the market in the United States and focus on European markets where it already enjoys exceptional growth. Part of that plan affects the company’s operations in Michigan via Sports Illustrated Casino and Sportsbook.
The Company Offloads US B2C Assets
Under Evoke’s plan, the company said that it expects to conclude the sale of its assets in Virginia and New Jersey. Complementing this plan, the company targets full exit from the US business-to-consumer (B2C) vertical at some point in the first quarter of next year and the sale of its assets in Michigan and Colorado marks an important step in that process.
While that’s the most recent plan, Evoke’s previous intention was to discontinue its offering in Michigan by the end of the year. While the plan has changed slightly, the challenges for Sports Illustrated Casino and Sportsbook in The Wolverine State remain.
Evoke Stays on Track with Plan to Grow in Europe
A prime reason for the operator’s planned exit from the state is the competition it is facing and unsatisfactory results. SI Casino is one out of a total of 15 licensed operators that are permitted to offer their services to Michigan customers. According to a report by Action Network, the platform’s revenues did improve in the last months when compared to the summer, but they are still below $1 million per month, making it difficult for Evoke to continue to offer its services there.
In June, SI Casino reported nearly $750,000 in revenue, while in July the figures improved slightly to $835,618. Then, in August the revenue dipped once again to $808,000 before increasing to $941,463 in September.
Despite the fluctuations, Evoke’s plan is clear: focus on Europe and divest US B2C assets. Following this plan, back in August, Evoke announced the acquisition of a majority stake in the gambling operator, Winner.ro. This helped grow the company’s footprint in the region, positioning it as the fourth-largest Romanian B2C gambling operator.
Before that, in March, Evoke announced the sale of its US B2C assets to Hard Rock Digital. This strategic divestment is expected to “realize a recurring annualized benefit to Adjusted EBITDA of approximately £25 million from 2025 onwards,” as explained by the former company. Of that total, Evoke said that it will use some £10 million for various value-creating and growth initiatives.
The sale of Evoke’s assets to Hard Rock may translate to the access of the latter company to the Michigan market. Still, such expansion remains subject to relevant regulatory approvals.
