Flutter tweaks international strategy as PokerStars investment ramps up
Reinvigorated PokerStars to serve as primary brand in international markets as Flutter invests £48m in Indian gaming operator
Flutter Entertainment has unveiled a new multi-year international expansion strategy consisting of brand realignment, investment and potential M&A.
The strategy centres around investing in product, technology and marketing across the international business, with a particular focus on the PokerStars brand.
Flutter will use PokerStars as the lead brand across the international division due to its strong brand awareness and customer base, which is the largest in firm’s international segment.
Betfair, another major operator in the group’s international portfolio, will become the secondary brand but will still be actively promoted in select markets including Italy, Spain, Romania and the Latam region, where it retains high brand awareness.
As justification for this pivot, Flutter pointed to PokerStars’ larger market share and customer base, which is three times the size of Betfair overseas.
Building on Flutter’s prior investment in the PokerStars brand in 2020, the FTSE 100 operator is keen to “reassert” PokerStars dominance of the online poker market through a combination of brand and product enhancements.
This follows a dip in market share over recent years due to prior under-investment while under the umbrella of The Stars Group (TSG).
In respect of marketing, one of the key pillars of this new multi-year strategy is to invest in direct casino acquisition for PokerStars Casino, rather than relying on cross-sell from its flagship poker business.
“We know that when we invest in marketing and player generosity, customers respond over time, so we intend to hold these levels of investment,” Flutter CEO Peter Jackson told investors.
“The good news for us is that we have some terrific assets at our disposal with which to grow the business and direct casino investment is a key tenet of our new strategy for the business.
“The quality of our casino product is excellent. We have over 1,500 titles of which 100 proprietary, designed by our own in house studios and we have the expertise to deliver strong direct casino acquisition in a way that PokerStars has not in the past,” Jackson added.
From a technological perspective, the investment programme includes stabilisation of the existing platform through addressing legacy issues before modernising the existing poker product, with the aim of simplifying the customer journey and improving digital marketing opportunities.
The increased investment in PokerStars kicked off in H2 2020.
The final key aspect of the new multi-year strategy, Flutter revealed, is to pursue bolt-on acquisitions in international growth markets, with Georgia-based business Adjarabet proving a prominent example.
Adjarabet is currently the market leader in its native Georgia, fighting off competition from Entain-owned Crystalbet, and has experienced growth of more than 20%, while expanding operations into neighbouring Armenia.
Flutter’s involvement in the business has seen the firm provide operational expertise and incremental product expansion resources, a strategy which it is now keen to replicate through further bolt-on buys.
“Where we can find strong national players with well recognised brands and competitive moats around their businesses, we will seek to add them to the Flutter portfolio,” Jackson explained.
“We will continue to be disciplined in the investments that we make and see good prospects for future investments around the world,” he added.
As part of this strategy, Flutter has acquired a 50.1% stake in Indian online rummy and skill gaming operator Junglee Games for £48m.
Flutter can expand that stake to 100% by 2025 and revealed its ambition to leverage Junglee’s existing DFS database over the coming year.
Junglee Games was founded in San Francisco in 2012.