4: Amaya (2016)

It ’s been something of a rollercoaster 12 months for Amaya but, despite its ups and downs and subsequent fall of two places in the Power 50, there is no doubt the operator remains a major force in the egaming industry.

Let’s get the negatives out of the way with first. Amaya was forced into a series of management changes earlier this year, firstly linked to the New Jersey licensing process and more recently when CEO and king deal-maker David Baazov stood down in order to defend himself against five insider dealing charges.

Amaya has also struggled to gain traction in sportsbook through the BetStars brand – the main issue being the quality of product. Meanwhile, an 11% fall in Q1 poker revenues once again placed a question mark against the long-term sustainability of the vertical – although recent product and VIP changes are believed to have returned poker to growth in Q3.

But every cloud has a silver-lining and the departure of Baazov has seen former Playtech COO Rafi Ashkenazi become chief executive of both Amaya and its Rational Group subsidiary. Ashkenazi’s deep sector knowledge means Amaya now has a more operationally-focused man at the helm which, bearing in mind PokerStars’ evolution into a multi-vertical operator, could yet turn Baazov’s exit into a positive.

Yet while sportsbook huffed and puff ed, casino triumphed. Despite very little or no external marketing, casino contributed approximately 20% of Amaya’s £168m revenues during Q2 and we should expect this contribution to climb further across the next 12 months, if at a slightly more modest growth rate.

Furthermore, the firm made its long-awaited return to the US in March after New Jersey granted Amaya a licence to bring PokerStars back to the market. While some described its comeback as underwhelming, PokerStars’ re-entry has grown the market, although it may take some time for the brand to cover its two-and-a-half year handicap. The potentially lucrative Californian market remains a distant dream.

The strength of Amaya is reflected in its financials. Full-year 2015 revenues were up 8% to approximately £740m and the firm has continued on that trajectory in 2016, with six-month revenues also up 8% to approximately £350m. EBITDA growth in H1 increased an impressive 12% to £150m.

So while the firm is one in transition, Amaya is certainly worthy of its top five place. Earlier this year the operator hinted it was considering a sportsbook acquisition and surprised many when confirming just days before this issue went to press that it was in talks with William Hill over a “merger of equals”. Whether that deal transpires remains to be seen but for now Amaya remains an egaming giant in its own right.