eGaming Review Power 50: 10 to 4
A run-down of the movers and shakers in this year's eGaming Review Power 50 from 10 to 4
10. RATIONAL GROUP
(N/A)
Absent from last year’s list due to a lack of ï¬nancial disclosure and concerns over its future with DoJ charges looming, PokerStars’ owner makes a return to this year’s Power 50 in 10th spot. With over 60% of the global online poker business, rarely has a marketing slogan more aptly described a corporate entity. PokerStars is poker, and its total dominance of the vertical presents a constant headache to any other operator in the sector. The operator’s reach stretches across the globe, and it has more licences than almost any other Power 50 operator including Belgium, Estonia, Denmark, France, Italy, Spain and the Isle of Man. It has settled its civil charges with the DoJ and the only lingering doubt remains around its founder Isai Scheniberg who has stepped down from any executive role. With parent company Rational Group not disclosing ï¬nancial numbers for this year’s Power 50 it’s hard to accurately gauge its ranking but, based on informed estimates, it ranks well for proï¬t and revenue with those in the top 10. Rational’s impact on the industry continues to be considerable and any move it makes is watched closely. Its absence from any market is a considerable win for rival operators as can be seen from eï¬orts to prevent it from entering the US. And its ï¬nancial scale is hard to argue with. Rational is a serious operator and deserves to resume its place in our top 10.
9. SKY BET
(9)
Another impressive year from the Leeds-based operator saw revenues rise 37% for the 12 months ended June 2013 with mobile driving huge growth in sports betting. Its mobile product is consistently one of the highest ranked apps in the Apple App Store and it recently launched a seamless login from its sports betting app to the mobile casino. The ï¬rm continues to invest heavily in mobile and its arguably a more dangerous competitor on new platforms than it is online. Meanwhile, further integration with Sky Sports TV provides a sign of things to come. Its casino business continued to post impressive growth and the mobile product was continually revamped over the year. Bingo and poker managed to hold their own in a tough operating environment for both verticals. And as it continues to build links with BSkyB and potentially Sky Italia it will continue to eat away at market share for many of the top 10 operators.
8. BETSSON
(6)
Betsson is a powerful operator in its core Nordic markets, with 81% of the £34.7m Q2 2013 gross proï¬t its B2C operations generated coming from the region. The majority of the remainder came from Europe and its regulated Italian oï¬ering is growing. The ï¬rm’s other main revenue stream is its B2B operations, including revenue from its Turkish partner, where gross proï¬ts were £12m for the quarter. Both B2B and B2C showed growth in the period, which also saw the ï¬rm complete its migration to a single technical platform. This should position Betsson well for growth and allow it to improve its share of mobile revenues. It has a strong mobile suite, but mobile comprises only 9% of revenues, although its Betsafe brand reports a 16% share. In total, Betsson operates 26 brands, of which 11 are B2C, and has close to 1,000 employees (including consultants) on its books. It’s one of the most solidly run operations in egaming and continues to post impressive growth numbers year-on-year. If mobile can add incremental revenue, then Betsson can expect signiï¬cant growth in 2014.
7. BETFAIR
(7)
Breon Concoran wasted no time plotting a new course for Betfair after joining a little over a year ago. In the CEO’s own words, 2013 has been a transitional year for the operator, and a leaner and more focused Betfair is beginning to emerge. A 950p a share takeover bid in May shows conï¬dence in future growth and failed to knock Betfair from its new course, however exits from grey markets including Greece and Germany have naturally had a negative impact on revenues. It continues to dominate the exchange betting space and was ahead of the curve with its successful in-play cash out product, which others have now introduced. The jury is still out on whether Betfair’s ï¬xed odds sportsbook will provide a signiï¬cant boost to revenues, either as a standalone product or one that pushes the boundaries of sports betting by combining it with the exchange. But mobile has been a big win for Betfair this year, highlighted by a 53% increase in revenues from handheld devices during the three months ended 31 July 2013. Its ï¬rst TV ad campaign failed to prevent gaming revenues falling 6% over the year, led by a 26% decline in unregulated jurisdictions.
6. GAMESYS
(5)
As Gamesys continues to attract plaudits for both product and brand innovation, 2013 has perhaps been most notable for the operator’s moves to diversify. It fought oï¬ great competition to snare a casino partner, the Tropicana Casino and Resort, in New Jersey and surprised many by acquiring Virgin Games for an undisclosed sum in January. The success of its ground-breaking launch of Gamesys’s RMG slots and bingo games on Facebook last year has yet to be revealed, but it is not believed to be a signiï¬cant revenue generator. Meanwhile in Spain its Botemania bingo brand continues to lead the market, while established sites Sun Bingo and Jackpotjoy are among the UK’s most popular and well-known sites. The UK operator is also understood to be developing a free-to-play social poker product to be launched alongside a real-money variant under its Virgin Games brand. Gamesys now employs more than 700 staï¬ across its London, Canada, Gibraltar and Barcelona oï¬ces and is hiring rapidly in New Jersey.
5. BWIN.PARTY
(4)
It has been a tough year for bwin.party, with its H1 2013 results showing revenue decline in all four verticals and EBITDA falling 34% to 60.7m. Regulatory changes in Germany, where it generated around a ï¬fth of revenues, were felt hard, as was ISP blocking in Belgium and the lack of slots in Spain. The operator has undoubtedly suï¬ered for its lack of a strong mobile proposition and delays to key technology projects. September ï¬nally saw the re-launch of its key PartyPoker product, where it is hoping to arrest the decline and feel some impact from its tactical shift from “volume to value”. Its relationship with Boyd and MGM leaves it well-placed to beneï¬t from further US progress. And the move to a single technology platform, a relaunch of poker, mobile sportsbook and bingo and additional technology projects are all positive signs. It retains a powerful European footprint and revenues most other operators will envy.
4. 888
(8)
The focus on the recreational market continues to be hugely successful for 888, where revenue growth has continued throughout the past 12 months. While almost all other operators have seen poker revenues slide, 888 has gone from strength to strength in the vertical. Strong poker and casino performance (revenues up 13% to $94.1m and $46.9m, respectively) helped it post a 7% year-on-year revenue increase in its H1 ï¬nancial results, and both verticals continue to grow. Bingo is the only black mark, with a solution to the decline in revenues a key area of focus at present. It is one of the only poker operators to capitalise on the Spanish market, where its market share has made the country a strong revenue contributor. A launch in Italy has been delayed, however early 2014 should see the 888 brand launch there. If it can replicate its success in Spain that could be another big move. Arguably its biggest opportunity is in the US where it has made a number of B2C and B2B deals in both Nevada and New Jersey.
Tomorrow: Power 50 top 3
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