Rank CEO: No growth in UK online bingo market
Comments from UK operator's chairman and CEO Ian Burke follow poor performance by Mecca Bingo brand
Rank chairman and CEO Ian Burke believes there is no growth in the UK online bingo market after the operator’s Mecca brand witnessed poor digital performance in Q3.
Following yesterday’s results Burke said there was “very little differentiation” in the vertical, with the challenge now to develop different experiences through product services and the general look and feel of websites.
“In the short term, it’s going to be competitive from a point of view in the market spend needed to even preserve the revenues we’ve got, particularly with a number of new operators coming into this space,” Burke said.
Burke also noted significant market share movements in the sector, with Gala in particular benefitting from switching from its own platform to Playtech’s Virtue Fusion. The offering has boosted Gala’s market share after the initial cost of moving to a third-party platform.
Despite the negative outlook, Burke said Mecca remains committed to creating point of differentiation that are sustainable and reflect Rank’s brand strength.
“This will allow us to achieve growth in the medium term, and take the [Point of Consumption tax] hit,” he added.
The comments come after 888 posted similar contraction in it bingo vertical this week, with its Q3 revenue down 21% to $10.4m. 888 CEO Brian Mattingley said the operator has now reinstated a competitive bonusing policy and cited a need to match competing operators in order to attract customers.
“We are back to our normal bonusing policy because you’ve got Tombola and you’ve got Gamesys “ these guys are private companies and they’re investing a lot in bonuses and online bingo customers are the same as offline bingo customers, they will go for a deal,” Mattingley said.