Parimatch CEO exclusive: UK market is “physically impossible” for new entrants
CEO Sergey Portnov tells EGR Intel that even challenger brands with superior products don’t stand a chance of competing
Parimatch CEO Sergey Portnov has revealed he would never launch the brand in the UK because he believes it is “physically impossible” for new entrants to take market share.
The Cyprus-headquartered operator hit UK headlines back in February after recruiting Irish MMA star Conor McGregor as a brand ambassador during ICE 2019.
The Parimatch business model focuses on the Commonwealth of Independent States (CIS) region and its four key markets of Russia, Kazakhstan, Ukraine and Belarus.
Portnov says Parimatch prefers to operate in regions where fewer regulations and a more lenient approach to compliance allows for a shorter time to market and a quicker ROI.
When asked if Parimatch would consider launching in regulated Western European markets, Portnov ruled out the UK without hesitation.
“There is no way,” he says. “Almost 80% of the market is split between the same four or five operators and no market share can be taken away from them.
“They deserve it just by being there for so many years – time is the strongest market holder, especially if you have been around for a long time.
“Even if you produced a better product, I still think that you would fail. To use an example, look at people who like driving BMWs. What car could you introduce to make them move away?
“People with BMWs have very strong loyalty and even if you offer them a Mercedes or a Ferrari or a Rolls Royce, that still might not be enough to make them move.”
Asia-facing operator 188BET closed down yesterday in the UK, citing the “very competitive” nature of the market as the main reason behind the decision.
“The only way you can compete is to attract brand new players who are too young to appreciate heritage brands – a 20-year-old guy who deposits for the very first time, for example,” says Portnov.
“For him, the history of William Hill is irrelevant. Everyone is even, so in that situation you maybe could have a chance, but fighting for such a small market segment makes it a closed door for us.
“The existing companies cannot be moved. It is physically impossible,” he added.