EGR Power 50 2021: 50-31
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50. Esports Entertainment Group (48)
A new entrant in last year’s rankings, the past year has been eventful for the Malta-based operator. Just after 2020’s rankings were published, Esports Entertainment Group (EEG) signed a deal to acquire casino operator and technology business Lucky Dino Gaming Limited for £22.2m in December. The operator also enjoyed record revenue for Q4 2020 of $2.4m (£1.7m) after Argyll Entertainment was integrated into the business. The momentum didn’t stop there, since in May a €16m (£13.8m) deal to acquire sports betting operator Bethard was secured. CEO Grant Johnson CEO said: “With this transaction, we expect to gain two new gaming licences, including one in the strategically important Swedish market.” EEG posted revenue of $16.4m (£12.2m) for its fiscal Q1 2022 period ended 30 September. We expect the operator would have risen more in the rankings if not for some of the top movers and shakers pushing the numbers down.
49. Hero Gaming (44)
With an impressive past three years increasing Swedish revenue by more than 500%, CEO Tomas Bäckman attributes the operator’s success to its people. Hero Gaming isn’t shy of a challenge and embraced a new hybrid way of working over the past year, as Andrea Saliba, people and culture manager, noted: “We strive for evolution – not revolution – of the workplace.” The Swedish firm has also been very vocal about diversity and inclusion initiatives as well as refusing to work with companies or event organisers that don’t keep D&I front of mind. “That is where I think the industry can come together because if we’re aligned as gaming companies in saying we want diversity at these events, and if we see there isn’t diversity, there’s a penalty tied to that or we have the right to pull out of that event,” Hero Gaming’s chief people officer, Marie Theobald, told EGR. In August, the Malta-headquartered operator sold off its Speedy Ltd and Speedy Originals gaming brands to Paf.
48. Intouch Games (42)
Things got off to a rocky start for Intouch Games when it was dealt a hefty fine of £3.4m from the Gambling Commission (UKGC). The regulator cited responsible gambling breaches, AML failings and marketing inadequacies as the reasons for the penalty. However, the Birmingham-based operator seemingly turned things around by investing heavily in compliance and by also implementing remedial actions. In its latest financial report, Intouch Games revealed efforts to step up to the mark: “The company has increased resources and spending in compliance, responsible gaming and AML and is actively working with the Gambling Commission and other third parties to ensure a robust structure is in place to deliver regulator expectations.” However, in the latter part of the year, there was cause for celebration as the firm scooped the mobile operator accolade at the EGR Operator Awards 2021, while also signing as back-of-shirt sponsor for West Bromwich Albion FC for the 2021/2022 season.
47. Marathonbet (41)
Marathonbet is one of the few operators to be given a pardon when faced with a complaint which was then investigated by the Advertising Standards Authority (ASA). The objection was in relation to two of the operator’s Facebook adverts displaying a 0% margin claim which was later concluded by the ASA as not misleading and that no further action was required. In May, Marathonbet inked a deal with live casino software provider Vivo Gaming. The partnership allowed the low-margin operator to expand its live casino offering by adding more than 20 baccarat and 10 roulette tables as well as a variety of slots titles.
46. Française des Jeux (46)
French lottery operator La Française des Jeux (FDJ) gained a new CEO for its Sporting Group subsidiary earlier this year in ex-Tabcorp executive general manager of wagering Andy Wright. Sporting Group includes both B2C spread betting outfit Sporting Index and B2B sportsbook technology provider Sporting Solutions. The operator reported Q3 2021 revenue of €529m, a rise of 5% compared to 2020, while sports betting revenue was up 7% YoY. The company is currently under investigation by the European Commission (EC) over alleged breaches of EU state aid rules, based on two complaints around a payment of €380m in April 2020 made by FDJ to secure a new 25-year exclusive rights agreement to operate lottery games at point of sale and online, as well as sports betting at the point of sale. However, in more positive news, FDJ renewed its support for vulnerable groups by pledging €2m to support young people hit hardest by the health crisis.
45. Parimatch Tech (50)
After debuting in the Power rankings last year, Parimatch Tech has since made a few changes to the company. In April, the CIS-focused operator had a reshuffle of its senior management, with then-CEO Sergey Portnov withdrawing from the position to become chairman of the board and replaced by partner Maksym Liashko and deputy CEO Roman Syrotian to become joint CEOs. Elsewhere, in November Dmitry Sergeev switched roles from CEO for the Parimatch CIS division to become head of Parimatch Eastern Europe to spearhead development of its Russian brand. A few months later in July, the sports betting company rebranded as Parimatch Tech, underpinning its plans to transition from traditional bookmaker into a product-focused, technology-led business. The following month, the operator agreed a three-year official partnership with Champions League winners Chelsea, as well as Aston Villa, Brighton and Southampton, bringing its brand presence to 30% of Premier League clubs for the 2021/22 campaign.
44. Betfred (40)
Fred Done, the founder of the Betfred empire, stepped down as CEO in March and passed the baton to Joanne Whittaker in April, who will no doubt be striving to elevate the bookmaker’s position in the online sector. However, Done, now 78, hasn’t reached for the pipe and slippers just yet; he’s instead stayed on as chair of this retail-focused operator based out of Warrington. Betfred hit the mainstream media headlines in April, and not in a good way, when the High Court ordered the firm to pay a customer £2m over a £1.7m jackpot won in its online casino. Betfred had previously withheld Andrew Green’s winnings blaming it on a software glitch. In more positive news, South Africa-facing sports betting brand Betting World was acquired by Betfred from bankrupt racetrack operator Phumelela Gaming and Leisure for around £6m. The company also continues to make inroads into the US.
43. Interwetten Group (35)
Malta-headquartered Interwetten slips eight places to 43rd place in the rankings amid what has been a challenging year brought about by the new German regulations, including a rise in sports betting turnover tax and restrictions on markets bookmakers can offer. The 31-year-old operator’s loss of former CEO Dominik Beier, who oversaw two years of consecutive record revenue in 2019 and 2020, was a blow last year, as was allegations levelled against the firm as part of a collective court case in Austria over illegal gambling in the country worth €40m.
42. Casumo (37)
It wasn’t the most auspicious start to 2021 for Casumo as the UK Gambling Commission handed down a £6m fine relating to historic social responsibility and anti-money laundering failings. That aside, the casino-led operator, which is licensed in the UK, Sweden and Denmark, added Spain to its country portfolio after going live there in April with Casumo.es and its Kambi sportsbook. What’s more, the firm later unleashed GiG-powered Pay N Play brand Kazoom Casino in Finland, followed by Sweden. Its relationship with Championship club Reading was extended in August, while, on the personnel front, Daniel Blackmore was hired as director of product following the departure of Chris Scicluna.
41. SkillOnNet (39)
It has been a relatively quiet year for SkillOnNet, the parent company of recreational bingo and casino brand PlayOJO, although the firm did create headlines in July after acquiring the licence to operate the established Genting Casino in the UK. The sportsbook was shuttered, though, to turn Genting into a pure gaming entity. Elsewhere, the company secured access for its recreational PlayOJO offering in New Jersey through an access agreement signed with Caesars Entertainment. Six months on from the announcement and its online casino has yet to launch in the Garden State, but when it eventually does go live you can’t help but feel it will be a tough ask to compete in a mature market with two-dozen igaming brands.
40. Zeal Network (31)
Moving down nine spots from 12 months ago, Zeal Network recently attributed an unfavourable lottery market as the reason behind flat revenue growth. The operator posted a 1% YoY increase in revenue – €65.1m (£55.7m) for the first nine months of 2021. Jonas Mattsson, CFO of Zeal Network, said: “The fact that we have managed to continue to grow with a significantly weaker jackpot development compared to the previous year, and at the same time significantly improve the profitability, makes us proud.” In July, the German lottery provider made an offer to purchase remaining shares in Lotto24, having already held around 93% of shares in the business. This resulted in an agreement that saw Lotto24 delist its remaining shares (price per share estimated to be around €381.79) from the Frankfurt Stock Exchange, allowing Zeal to fully acquire the firm.
39. Caesars Interactive ***NEW***
If Caesars was the sleeping giant in the legalised space, it awoke with a vengeance in 2021, beginning with the completion of its takeover of William Hill for £2.9bn before offloading all the non-US parts to 888 for £2.2bn. A flashy new app followed, as did a massive marketing push highlighted by an ongoing national ad campaign featuring actor-comedians JB Smoove and Patton Oswalt. Caesars was active on the deal-making front as well, becoming an official partner of the NFL while joining forces with the Fiesta Bowl in an expansive partnership. It maintained the momentum in Q4, launching its online sportsbook in Arizona and later gaining market access to New York as part of one of the selected consortiums.
38. Paf (38)
It has been quite an eventful 12 months for Paf, which includes embracing fully remote working (abroad if requested), the launch of an educational tech programme to train 50 software developers, and the acquisition of no-registration, Swedish-licensed brands Speedy and Speedy Originals from Hero Gaming to diversify Paf’s offering in Sweden. Furthermore, the Åland Islands-based operator continues with efforts to protect players (annual loss limits have been gradually lowered to €20,000 from €30,000 in 2018) as part of its continued commitment to sustainability. CEO Christer Fahlstedt stated: “We believe that long-term, sustainable development is a must for our industry. There has to be transparency.”
37. PointsBet ***NEW***
PointsBet has carved out a significant niche in the sports betting world Down Under, yet the ASX-listed firm has set its sights firmly on the US and Canada, including making a raft of hires and striking partnerships with sports teams. However, CEO Sam Swannell has railed against the marketing “arms race” in the US, while PointsBet US, headed up by Johnny Aitken, has found itself one of the backmarkers. Failing to gain access to Arizona when the market launched in September was a blow, too. That said, its US operations posted a 112% YoY increase in turnover in its fiscal Q1 2022. Gross win revenue surged 197% as well. With PointsBet boasting an in-house sportsbook platform and pricing – sought-after attributes amid the US gold rush – the company continues to be the subject of takeover talk.
36. Penn National Gaming ***NEW***
Penn National Gaming (PNG) is the second-highest new entry as it makes its Power 50 debut this year. Building on the bedrock of its Barstool Sportsbook, PNG has bold and outspoken ambitions – ambitions which are just as outspoken at times as Barstool’s controversial and divisive CEO, Dave Portnoy. 2021 has seen PNG raise $400m in capital through share rights issues, money which it used to fund a $2bn acquisition of Toronto-based media company and betting operator theScore. The aim is to migrate Barstool Sportsbook – a brand that has struggled to make much of an
impression in the US – from Kambi to its own platform, although this is a work in progress. Reporting a 405% post-Covid-revenue bounce in Q2, PNG’s growth has continued into Q3, and with the full effects of theScore acquisition set to boost revenue, PNG remains one to watch out for in the US.
35. Rush Street Interactive (43)
Building on its 2020 SPAC merger with dMY Technology Group, 2021 has been a year of positives at Rush Street Interactive (RSI), the Chicago-based operator behind the BetRivers and PlaySugarHouse brands. Successive quarters of year-on-year revenue growth, culminating in Q3 revenue soaring 57% YoY to $122.9m (£91.1m) and MAUs up 26%, have been complemented by launches in Michigan, Arizona and Connecticut where the firm secured a multi-year agreement with the Connecticut Lottery Corporation. While revenue for the first nine months of 2021 amounted to $357m, full-year revenue is guided at $480m-$500m. RSI, which has been the subject of M&A speculation of late, continues to make a name for itself in the regulated market of Colombia, boosted by the recent partnership with LaLiga to become the Spanish football league’s exclusive betting partner in the South American country.
34. Sazka ***NEW***
It’s been a busy year for new Power 50 entrant Sazka. The Czech lottery operator has had some notable hires over the past year, ahead of its bid for the UK National Lottery licence, including the appointment of former Sainsbury’s CEO Justin King, lastminute.com founder Brent Hoberman and Twitter UK MD Dara Nasr to its advisory board. The cross-industry senior hires were bolstered by two more high-profile appointments in former chief marketing officer Aleš Veselý as the group’s new CEO for its Czech subsidiary, followed by ex-Tote MD David Craven assigned to the role of CEO of Sazka Group’s UK-facing Allwyn brand unveiled in April. Allwyn will spearhead Sazka’s bid for the UK’s coveted fourth National Lottery licence, which has been held by Camelot since 1994.
33. ATG (34)
Swedish betting and gaming operator AB Trav och Galopp (ATG) experienced a flat first nine months to 2021 as NGR came in at SEK3.9bn (£321m) – an almost identical total to that generated in the same period last year – while active customers dipped from 1.4 million to 1.3 million. On a more positive note, NGR was up 20% on 2019. The state-owned operator revealed that group revenue for horseracing and casino fell by SEK161m and SEK33m respectively in the first three quarters of 2021, although sports betting bucked the trend by rising SEK192m YoY. ATG has also found itself in hot water with the Swedish Gambling Authority of late. In June, the regulator reprimanded the operator for allowing betting on a horse whose jockey was under 18, something which is forbidden under the country’s gambling laws. And earlier in the year, a SEK2m fine was meted out for offering more than one bonus to bingo players.
32. 12BET (25)
While mostly staying out of the headlines, financial performance for the past year disclosed to BDO proved 12BET continues to dominate in Asia. In terms of marketing prowess, 12BET had previously struck a betting partnership with West Bromwich Albion as shirt sponsor for the 2019/20 season. Speaking on a recent industry podcast on the topic of the increasing pressure and restrictions coming into play for sports betting sponsorships, former CEO and current consultant at 12BET Rory Anderson said: “Sport, the way it works, you have sport, you have TV, you have sponsorship, and each part of that triangle is heavily reliant on the other. It’s up to the clubs maybe to take the lead and say, ‘Okay let’s have one partner per club,’ otherwise there’s a real danger of killing the goose that’s been laying those golden sponsorship eggs.”
31. IGT/Lottomatica (33)
Benefitting from its €950m sale to perennial igaming suitor Apollo Global Management in December 2020, this year has seen a significant turnround in fortunes for the Italy-focused business, just as the southern European nation has risen from the spectre of the Covid-19 pandemic. At the beginning of 2021, Lottomatica was seventh in the list of top Italian operators, but just six months later, the business climbed to the top spot following its consolidation with Gamenet and retail market leader Goldbet – a lead it has yet to give up. In September, Lottomatica generated GGR of €19.7m – over €6m more than it did in August – accounting for a 16.5% share of the Italian market.