EGR Power 50 2020: 31-50
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31. Zeal Network (29)
It appears to be a case of the calm after the storm for Zeal in 2020, following the public fallout with fellow lottery operator Lottoland last year after the latter’s failed attempt to scupper Zeal’s takeover of Lotto24. The German firm posted impressive H1 2020 results, with billings nearly double that of H1 2019 at €314.4m, due in part to the aforementioned takeover of Lotto24. A 57.3% increase in marketing spend for the first nine months of 2020 compared to 2019 resulted in record customer acquisition figures, with 787,000 signing up in the first nine months of 2020. However, nine-month 2020 revenue, EBITDA and profit all plummeted year-on-year, with Zeal pointing towards “dis-synergies” in relation to closure of its secondary lottery betting arm in October 2019.
32. Kaizen Gaming (31)
Regrouping the Stoiximan and Betano businesses under the Kaizen Gaming umbrella was not just about bringing together the two brands, which operate in Greece, Cyprus, Germany, Portugal, Romania and Brazil, but it was also about signposting a crucial point in the evolution of the business. The corporate rebrand stems from a Japanese term meaning to ‘change for the better’ or ‘continuous improvement’, something which will clearly be on the minds of Kaizen Gaming execs going into this next period. Taking home three gongs at the EGR M&I Awards 2020, 2021 looks to be an important period for Kaizen as it secures its dominance of the Greek market following licensing and challenges in the emerging markets of Germany and Brazil.
33. IGT/Lottomatica (33)
Despite a challenging year both in terms of operations and out-of-the boardroom issues, Lottomatica has continued to largely retain its position as Italy’s second-biggest online casino brand behind PokerStars. Although it has dropped to fourth position in the most recent Italian poker rankings, this predominantly lottery-based firm revealed in July that table tennis, a more niche betting vertical, had accounted for over half (52%) of its bets during the pandemic period. In a time where many Italy-facing operators experienced difficult transitions from retail to online due to Covid-19, IGT-owned Lottomatica drew on its strong presence across several verticals to deliver a 3% revenue rise in Q3 2020. In December 2020 IGT announced an agreement to sell the Lottomatica business for €950m to Gamenet Group.
34. ATG (35)
The Swedish Horse Racing Totalisator Board, or ATG, has been in operation since 1974 and is a force to be reckoned with in its home country. During the live sports hiatus in March, the operator capitalised on bettors turning their attention to horseracing. So much so that ATG enjoyed a 20% year-on-year increase of net gaming revenue for the first half of 2020 of SEK2.5bn. In February, the operator agreed a two-year, multi-race sponsorship deal with horseracing association Svensk Travsport and the following month confirmed a partnership with UK Tote Group which allowed the Tote to offer betting on Swedish horseracing for the first time. In reaction to the temporary deposit limits set out in Sweden from July, the operator said: “We still see high customer interest in casino even after 2 July, but the effect of the regulation has meant an expected reduction in net sales.”
35. Interwetten Group (37)
Despite overseeing two years of consecutive record revenue in 2019 and 2020, Interwetten finds itself on the search for a new CEO following Dominik Beier’s decision to step down from his role over conflicting views with the board concerning the company’s future direction. After assuming the role in February 2019 at the age of just 27, Beier told EGR via email in Q3 that: “Due to different views on how to position and develop the company in the future, we took the common decision to separate our paths.” Away from the boardroom, the Malta-licensed operator launched a new online sports betting app for iOS in August, featuring a new UX, live streams and cash-out functionality.
36. Danske Spil (38)
2020 has been a year of substantial change and executive realignment at Danske Spil, with Danish politician Peter Christensen appointed as chair in July and longstanding CEO Susanne Mørch Koch leaving the business in October. Winning best native app and best omni-channel solution at the EGR M&I awards 2020, Danske Spil has had a more turbulent financial year with Covid-19, with Q3 revenue slumping 7% to DKK3.44bn. Declines were also reported in the group’s Danske Licens Spil sports betting business, with revenue falling 14% and revenue from the firm’s Swush fantasy sports operation also dropping 37.5% to DKK5.5m in Q3.
37. Casumo (36)
Following the long-awaited UK launch of its sportsbook in January, Casumo has overseen a year of launches and shutdowns unlike many operators in the industry. The operator sealed its first-ever acquisition in August after inking a deal to purchase CasinoSecret for an undisclosed fee, before jumping on the pay and play bandwagon in September with the unveiling of Kazoom Casino. Conversely, the group lowered the curtain on its Dunder sportsbook brand in the UK in October. The white-label platform, in partnership with Gaming Innovation Group, saw CEO Thomas Rosander depart in April before losing its principal sponsorship agreement with EFL Championship side Bristol City in August.
38. Paf (39)
Building on its responsible gambling promises has been a key priority for Paf in 2020, with the Åland-headquartered operator reducing its 2019 loss limits even further to €20,000 in September. “We are now lowering the loss limit further to show that it is possible to survive as a gaming company without income from the biggest big players,” CEO Christer Fahlstedt claimed, despite those changes reducing revenue by around €2m-€3m. With revenue and contributions to Åland-based causes continuing to remain stable in 2020, Paf also acquired top-10 Swedish-licensed operator Mandalorian Technologies in March, signalling the firm’s ambition to become a bigger player in the Swedish market.
39. PlayOJO (42)
PlayOJO continues to make incremental inroads in the Power 50 rankings after finishing 50th and 42nd in 2018 and 2019 respectively. The SkillOnNet-powered operator debuted its bingo offering in the UK this summer, which was backed by a “substantial seven-figure” above-the-line and digital marketing campaign, as well as launching its PlayUZU brand in Spain. Speaking to EGR in September, PlayOJO co-founder Ohad Narkis said he was planning to enter two new regulated markets each year, with a core focus on Europe and Latam. Narkis went on to say: “One of our main strategic goals is to become the default destination point for recreational players in all markets that we operate in.”
40. Betfred (40)
A non-mover for Betfred which still finds itself in 40th place in the Power 50. The Warrington-based bookmaker will be hoping for more forward momentum when the carving up of William Hill’s non-US assets begins following its multi-billion-pound takeover by Caesars. Owner Fred Done has been linked heavily with hoovering up Hill’s UK retail portfolio, and after being knocked back in his £40m takeover of bankrupt South African horseracing operator Phumelela in September, he will be crossing his fingers for a far more fruitful 2021. However, Done may face competition from several private equity firms, including CVC Partners and Apollo Global Management, while fellow operators 888 and GVC have also been rumoured to be readying moves.
41. Marathonbet (43)
While a well-known brand in Russia and Europe, Marathonbet is a growing firm in the UK with market-leading margins. The operator has secured large sponsorship deals with clubs including Manchester United and Manchester City. Marathonbet also features on the shirts of Sevilla, a deal that will end by the completion of the 2020-2021 football season, according to Spain’s Minister for Consumer Affairs Alberto Garzón. Earlier this year, the bookmaker confirmed it was leaving affiliate giant oddschecker’s platform and redirecting funds to more traditional direct response channels. The company had a bit of a reshuffle in its marketing department in June with its heads of retention, marketing and sponsorships all moving onto pastures new.
42. Intouch Games (44)
Following the launch of its Casino 2020 brand in November 2019, Intouch Games now has six brands within its portfolio and a workforce of over 400 employees across its offices in Halesowen, Bucharest and Taipei. Flagship brand mFortune launched in 2007 and now offers over 40 slot games. With many in the industry stepping up their efforts in the fight against Covid-19, Intouch Games was no exception. Owner Simon Wilson donated £500,000 to his local NHS Trust to support frontline staff at Russell’s Hall Hospital as well as offering technical services. “This crisis is unprecedented; but it’s during these times that we really need to step in and support our NHS,” Wilson stated. The operator has over five million players in the UK while adopting a player-focused approach.
43. Rush Street Interactive (50)
Rush Street Interactive (RSI), the online arm of Rush Street Gaming, is another firm to go down the SPAC path, this time with dMY Technology Group, as it seeks to expand its proprietary casino platform and Kambi-powered sportsbook into new states. As part of the public offering, the combined group expects to grow its valuation to $2bn, based on a 2020 EBITDA forecast of $9m. With a sizeable retail footprint in the northeast of the US, RSI benefited from a head start in its home state of Illinois with its BetRivers sportsbook brand and frequently leads in igaming market share in Pennsylvania where it was quick out the gate in 2019 with its PlaySugarHouse brand. In fact, Eilers & Krejcik Gaming estimates RSI to be neck and neck with DraftKings on 16% when it comes to overall online casino market share based on GGR in the handful of states currently live with igaming.
44. Hero Gaming (49)
After sneaking into the Power 50 last year in 49th place, Hero Gaming Group has strengthened both its product portfolio and senior leadership team throughout 2020. The Swedish operator launched its new flagship casino product, Boom Casino, in February across desktop and mobile, before beefing up its C-level team with one new hire and a promotion. Former Gamesys poker marketing manager Scott Dodson joined the group as chief marketing officer in April while David Drottson was promoted from his role as head of technology to assume the newly created position of chief technology officer in October.
45. Golden Nugget Online Gaming (47)
Much like DraftKings and Rush Street Interactive, Golden Nugget’s online division is poised to go public via a SPAC after owner Landry’s took the decision to spin the digital part off in a deal with Landcadia Holdings II. Golden Nugget Online Gaming (GNOG), as the new company is known, is one of four brands on Golden Nugget’s online licence that continually top the New Jersey revenue charts with around 30% of the market. In Q3, GNOG experienced an all-time high for player activity, while net revenue leapt 92%. The operator, headed up since 2013 by Frenchman Thomas Winter, expects to generate full-year revenue of $100m. It has also pledged to invest more in its low-performing betting product after switching from SBTech to Scientific Games earlier this year. GNOG, which is often praised for its online casino interface, plans to expand beyond New Jersey into Pennsylvania and Michigan.
46. Française des Jeux ***NEW***
Despite lockdowns impacting its main retail lottery business and company shares falling 22% between the beginning of 2020 and March, French lottery operator La Française des Jeux (FDJ) reported in October it expects to hit annual revenue of €1.9bn following a strong Q3 performance. The operator saw an uptick in stakes with the return of live sports in the summer which boosted the recovery, with CEO and chair Stéphane Pallez saying: “The third quarter confirmed the good momentum seen since mid-June and a recovery in our business at levels comparable to 2019. The group thus demonstrates its resilience and its reactivity.” In April, FDJ also confirmed to take a €380m syndicated loan to finance its 25-year rights deal on French lottery games and sports betting.
47. Videoslots ***NEW***
Videoslots is a growing force to be reckoned with, holding licences in the UK, Malta, Denmark and Sweden. Despite crackdowns on deposits and bonus restrictions, the operator is becoming a familiar name in the Swedish market along with being given the green light to launch its new sportsbook in the market. Videoslots also caused a bit of controversy in June after unveiling its new B2C casino brand Mr Vegas. The executive team was strengthened at the beginning of the year with the appointment of former Blexr manager Matthew Piscopo as chief product officer. Responsible for spearheading the operator’s product team, Piscopo said: “The whole team prides itself on innovation and giving players more choice than anybody else when it comes to online casino offerings and it’s sure to be an exciting year in terms of developments.”
48. Esports Entertainment Group ***NEW***
It’s been a big year for Esports Entertainment Group (EEG). In April, the Malta-based online gambling company up-listed to the Nasdaq stock exchange and the following month was awarded a 10-year licence for online pool betting by the Malta Gaming Authority (MGA), previously only having a Curaçao licence. And in July, the esports firm cemented the acquisition of one of last year’s Power 50 ‘Ones to watch’ companies, Argyll Entertainment. EEG also onboarded Argyll CEO Stuart Tilly and CFO Dan Marks, with CEO Grant Johnson stating: “They are a great addition to our organisation and will help us build on Argyll’s base of more than 100,000 registered users, placing us in a great position to grow revenue moving forward.”
49. Matchbook (46)
After a seven-month absence from the market, Matchbook relaunched to UK players in August. The suspension was lifted by the UK Gambling Commission after the operator made significant improvements to its compliance practices. A spokesperson for Matchbook said: “Matchbook is pleased that this matter has now reached a conclusion and we look forward to having a positive and strong relationship with the Commission.” Matchbook’s focus for 2019 was on creating a sportsbook-exchange hybrid including developing different versions of the exchange which could be presented to different customers based on their betting experience. Mark Brosnan, who served as CEO since 2013, stepped down in May 2020 with chief financial officer Farzad Peyman taking on the role of interim CEO. One of Matchbook’s offerings includes the Matchbook Betting Podcast, which had live broadcasts added in 2019 featuring insights from industry experts and tipsters, providing another element of content for players.
50. Parimatch ***NEW***
Parimatch came out of nowhere in 2019 and has snuck into the top 50 this year. The brand has boomed thanks to an enormous marketing budget. Conor McGregor was recruited as a brand ambassador to reflect the operator’s combative approach and management wasted no time flying him over to Kiev for a major campaign. The CIS-focused operator is also embedded in top-flight football, having secured deals with La Liga, Juventus and Leicester City, among others. CEO Sergey Portnov is a breath of fresh air and does not mince his words: “Entering into mature markets means all you do is spend money on corporate lawyers, KYC and compliance,” he said. “If you want real cash and profits, you have to enter more unpredictable regions.” Ukraine regulating offers huge potential for Parimatch.