March 6 (Reuters) - British bookmaker 888 Holdings ( EIHDF )

said on Wednesday it was looking at options for its

direct-to-consumer U.S. operations, including a potential sale

or controlled exit, as the division grapples with intense

competition and lower margins.

888, which is active in four U.S. states, said it was

terminating its agreement with Sports Illustrated-parent

Authentic Brands and would pay a termination fee of

about $25 million.