EGR Power 50 2022: 50-31

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50. Betfred

One of the few companies in the EGR Power 50 to be led by a woman – CEO Joanne Whittaker – Betfred just clings on to a position in the 2022 rankings. The Warrington-headquartered bookmaker expanded its presence in South Africa after taking a majority shareholding in local operator LottoStar in June, adding to its purchase of Phumelela Gaming & Leisure in June 2021. Betfred currently operates 53 retail shops in South Africa, as well as an online business following the previous acquisitions of Betting World and Sepels Sportsbet. Elsewhere, Betfred put pen to paper on a £4m deal with Premier League giants Manchester United as the operator became the Red Devils’ betting partner from this summer.

49. Gaming1

Owned by the Ardent Group, Belgian firm Gaming1 operates flagship brand Circus, which has signed as main sponsor of the Brussels Basketball club for the 2022-23 season. This deal joins its existing partnerships as a sponsor for the Intermarché-Wanty-Gobert Matériaux cycling team and, from this season, for football teams Standard de Liège and KAA Gent. The operator ended 2021 on a high by partnering with global investment firm CVC Capital Partners Fund VIII to fuel its next phase of growth. Earlier this year, Gaming1 was named as a top employer in Belgium in recognition of its HR practices by the Top Employers Institute. Only active in regulated markets, the Liège-founded gaming and sports betting firm entered the Dutch market through a joint venture partnership with land-based chain Gran Casino in March. Gaming1, which posted turnover of €250m in 2020, has more than 1,500 staff, including 490 in its digital hub in Liège, and is present in 10 countries.

48. Française des Jeux

French lottery operator Française des Jeux (FDJ) has had a busy year in terms of M&A. The largest deal came in November when it signed an agreement to acquire France’s second-biggest horseracing betting operator, ZEturf, which recorded nearly €800m in bets in 2021. FDJ also appointed Philippe Lazare to its board of directors in June on the recommendation of its Governance, Appointment and Compensation Committee. The operator reported Q3 2022 revenue of €592m, a 12% YoY rise on the €529m posted in Q3 2021. In addition, sports betting remained stable at €97m and lottery games saw revenue increase 14% to €478m due to the large number of EuroMillions rollover jackpots. Based on these results, FDJ anticipates revenue to grow over 8% for the full year, with an EBITDA margin approaching 24%.

47. Interwetten

Another year, another battle in its core market of Germany for Malta-based Interwetten, which continues to face challenges caused by the draconian regulations introduced as part of the Interstate Treaty on Gambling first enforced in July 2021. In a recent conversation with EGR Intel, speaker of the board Stefan Sulzbacher slammed the regulations as a “nightmare” and lamented the growth of the black market. He said: “There is a big black market in Germany and the German government does nothing to fight against this market. I don’t understand why they don’t because the German authorities are losing a lot of money every month.” Elsewhere, Interwetten expanded its sponsorship portfolio after penning a regional partnership with Liverpool FC in May.

46. LiveScore Group

LiveScore Group breaks into the EGR Power 50 for the first time to cap off a standout 2022 after netting the rising star award at the EGR Operator Awards. Led by CEO Sam Sadi, the company, which encompasses its media arm LiveScore and two B2C brands – LiveScore Bet and Virgin Bet – has excelled since its demerger from Gamesys Group in 2019. LiveScore Bet is live in the UK, Ireland, the Netherlands and Nigeria and is set to expand into Eastern Europe after LiveScore Group secured a £50m investment from Ringier Media. The investment took the group’s value to £500m and provided it with the leg-up needed to challenge established firms in the region, with an initial launch pencilled for H2 2023. Sadi has overseen solid growth, with employee headcount rising from around 200 to 700 people since the demerger, and annual revenue leaping from around £10m to well over £80m, with the CEO expecting to maintain a run-rate of 100% on YoY growth. An emphasis on shifting the ecosystem and blending media and B2C operations to acquire and retain customers has proved a smart decision so far.

45. KingMakers

As more and more European operators begin to flood sub-Saharan Africa on the hunt for new revenue streams, they are finding themselves clashing with homegrown brands. Nigeria, which is Africa’s most populous country and arguably its most sophisticated sports betting market, features a competitive online arena headed up by BetKing, a subsidiary of KingMakers that has experienced hockey-stick growth since its launch four years ago. Running on a proprietary platform, BetKing serves up a wide array of sports betting markets and the obligatory virtual sports, although football betting dominates. KingMakers, which has the tagline ‘Where Africa Plays’, has filled key positions with experienced personnel recruited from European operators and recently unveiled a new London office in Elephant and Castle for 60 staffers across trading, legal, marketing and product.

44. PointsBet

In last year’s EGR Power 50, much of PointsBet’s debut related to its US expansion plans and, going into this year, very little has changed. The US remains the main market for the Australia-based firm, which has augmented its drive by expanding into several new states including Kansas, New York and Louisiana as well as a push northward into Ontario. A pursuit of significant partnerships in all markets has followed, with the operator attracting a new investment partner in June when SIG Sports ploughed A$94m into PointsBet, with much of it focused on improving the in-house technology and UX. The investment saw a data-deal with Nellie Analytics, something which is sure to bolster in-play betting capabilities. In its latest set of financial results, PointsBet’s US and fledgling Canadian operations led the way over its native Australian betting business, with double-digit turnover growth pushing overall turnover up 18% during its fiscal Q1 for FY 2023.

43. SkillOnNet

As part of its commitment to operating in newly regulated markets, SkillOnNet launched in Ontario earlier this year with its SlotsMagic, SpinGenie and PlayOJO brands. Going live in the Canadian province followed the launch of Spanish language brand PlayUZU in the regulated Mexican online casino market in January. Meanwhile, PlayOJO unleashed a new global advertising campaign in the summer starring larger-than-life character ‘Madame OJO’ across two TV ads to promote its casino and bingo offerings. The campaign marked the first since PlayOJO refreshed its global brand positioning with a new logo and tagline ‘Feel the Fun’. However, the operator found itself in conversation with the Advertising Standards Authority (ASA) in May over misleading text in its ‘Hot and Cold’ feature (games which had paid out recently and games which hadn’t), resulting in two of its ads being pulled.

42. ZEAL Network

Online lottery broker ZEAL Network recovered from a difficult 2021 to achieve a 10.9% YoY increase in revenue to €49.4m and a 52% rise in EBITDA to €16.4m. The positive start to the year continued as revenue for the first nine months of 2022 rose to €74.5m and EBITDA reached almost €22m. Monthly active users are also on the up for ZEAL, as in those nine months there has been a 6% rise to just over one million in Germany. In July, ZEAL was granted a follow-up licence, for seven years, to broker lotteries in Germany for subsidiary LOTTO24. The Hamburg-based business has also launched and expanded a range of products in the last 12 months. These include the new German Dream House Lottery, which has the unique concept of allowing players to build their dream homes, as well as the expansion of its games into more markets.

41. ATG

Swedish horseracing operator AB Trav och Galopp (ATG) has shown consistency in many areas, none more so than its financial performance, with NGR coming in at SEK3.9bn during the first nine months of 2022, staying broadly at a steady level compared to the same period in 2021. Of the operator’s three divisions, online casino NGR grew 52%, beating sports betting with a 6% rise, while its horseracing division saw a decrease of 6% during the period. Total revenue slid 1% to SEK4.5bn between January and September. Elsewhere, the firm was issued with a SEK2m fine by the Swedish Gambling Authority for self-exclusion failings. ATG has been very active in advocating for a more responsible industry, with CEO Hans Lord Skarplöth in October labelling bonus offers an “embarrassment” for the sector in its dealings with players. Later that month, ATG underlined its commitment to responsible gambling by joining up with Kindred and Svenska Spel to openly publish data around problem gambling to increase public awareness of the issue.

40. Caesars Digital

Despite dropping one place this year, Caesars Digital has continued its ascent of the US sportsbook and igaming rankings during 2022, beginning with gaining an early lead in the New York online betting market when it launched in January with a huge loss-leader bonusing campaign. While its market share soon shrank due to marketing demands in the Empire State, Caesars has consistently improved its US online position, with successive launches in Indiana and Louisiana as well as the debut of a horseracing betting app in conjunction with NYRA Bets. In tandem, the operator has built up an impressive list of partnerships during the year, including recruiting NFL royalty in the Manning Family as well as the Chicago White Sox, New York Mets and the Cleveland Cavaliers. At a financial level, Caesars Digital saw Q3 2022 revenue rocket 121% to $212m, with EBITDA losses contracting more than 77% from -$164m to -$38m YoY.

39. Paf

The Åland Islands-based operator had a stellar 2021 as revenue soared 105% on post-pandemic gains for the full 12 months, the second-best result in its history. Profits were €34.3m, of which €20.5m were distributed to the benefit of society. In August 2022, Paf launched its teacher-free coding programme grit:lab, which has kicked off with 70 students participating in the two-year course at the firm’s headquarters. Marking its fourth change in mandatory loss limits, Paf furthered its responsible gambling measures targeted at young people by implementing an annual loss limit of €10,000 for those aged 18-24. This is in addition to its mandatory loss limit of €20,000 for all players. The operator said it brought in the additional limit because it believes young people are at a higher risk of developing gambling problems. Ludvig Winberg, corporate communications manager at Paf, told EGR Intel in a recent interview that loss limits should be extended further. “From our side, we would love to see national loss limits across regulated markets that are the same for every company. We believe that would really help all the customers out there.”

38. 12Bet

While 12Bet has always tended to shun the limelight, in financial figures disclosed to BDO the operator has seen key metrics such as NGR, operating profit and monthly active players grow compared to 2021. The firm delved back into the world of sports sponsorships by becoming the sleeve sponsor for Premier League team Wolves, taking over from a cryptocurrency exchange. On the deal, Wolves said: “12Bet are one of the most recognisable and trusted sports betting brands, with a particular reputation as in-play football betting specialists, and now join in partnership with the club.” 12Bet launched new sports betting services and online casinos as well as esports betting in August. The new platform offered players markets on games such as League of Legends, Mobile Union, CS:GO and DOTA2.

37. Parimatch Tech

Considering its Ukrainian roots, it’s been a tough time for Parimatch Tech as the country defends itself against Russia’s relentless military onslaught. As a result of the invasion, the operator withdrew the Parimatch brand from Belarus and axed its franchise in Russia. Instead, Parimatch Tech co-owner Katerina Biloruska told EGR Intel earlier this year that the plan is to fill the void by exploring new markets such as Africa and Romania and additional product offerings like B2B opportunities. The Parimatch Foundation, which Biloruska is chairwoman of, has been actively supporting those on the ground in Ukraine by offering humanitarian aid, as well as returning to its pre-war programmes supporting children’s sport and education. In April, the Cyprus-headquartered operator reshuffled its management team, switching from a dual-CEO model to a sole one, with Maksym Liashko taking the helm. Deputy CEO Anna Motruk explained the switch in an opinion piece penned for EGR Intel: “The classic triangle model with one CEO and two deputy CEOs was chosen to ensure stability in decision making.”

35. Rush Street Interactive

Rush Street Interactive’s (RSI) 2022 has been one of consistent progress across revenue, product and market exposure. Frequently the subject of acquisition speculation, the operator behind BetRivers has won plaudits for taking a more modest approach towards marketing than its peers, choosing instead to focus on innovation and user experience, drawing customers and CRM awards alike. Launches in Connecticut, where RSI shares the market with just two other operators, as well as a launch in New York have boosted revenue streams and its presence. In April, RSI launched in Ontario, a key growth market, as well as strengthened its Latam operations by entering Mexico via a relationship with local firm Grupo Multimedios in July. Acquisitions have also been on the agenda at RSI, with the firm clinching a $5.8m deal in March to acquire poker startup Run It Once Poker and its proprietary software.

34. PENN Entertainment

For one of our US-based debutants last year, 2022 has been characterised by one word: evolution. From the integration of its $2bn acquisition of theScore in October 2021 to the subsequent closure of theScore’s US betting operation in July 2022, to the migration of the theScore brand to a new centralised proprietary platform and the transition to its new PENN Entertainment guise in August, times have changed. Central to this is the company’s drive to become a sports and media business rather than your traditional one-lane operator. Utilising its theScore asset, which is based in Toronto, PENN has carved out a strong position in Ontario, while further leveraging its Barstool Sports brand in the US market with Barstool Sportsbook. While EBITDA losses have increased, largely due to technological and M&A-related costs, revenue has continued to rise in successive quarters and the proposed increase of its Barstool Sports stake to full control of the business should see this trend continue in 2023.

33. SKS365

For SKS365, the company behind Italian brand Planetwin365, NGR and EBITDA were down YoY in the 12 months to 30 June 2022, yet operating profit was up significantly, as per figures disclosed to BDO. Meanwhile, monthly first-time depositors rose despite a fall in monthly active players. In September, the operator celebrated one year since the launch of its WORK.LIVE.PLAY model focusing on the personalisation of the working routine, balancing the needs of employees and their roles within the organisation. SKS365 also unveiled a three-month wellbeing and mental health programme, which kicked off with the wellness time initiative where staff are given two paid half days per month to spend as they wish on their wellbeing. The three-month project, available across SKS365’s four locations of Serbia, Malta, Austria and Italy, also includes social events, motivational talks, fitness sessions and nutritional advice. In recognition of its efforts around people and culture, SKS365 scooped the employer of the year accolade at the EGR Italy Awards in October.

32. Lottomatica

One of the standout figures from Lottomatica’s H1 2022 results was a 6x YoY jump in EBITDA from €37.8m in H1 2021 to €233.5m this year. In figures published by industry database agipro, Lottomatica secured the top spot of the Italian sports betting and casino rankings, posting €22.7m in GGR for sports betting and a market share of 12.6% in September. The Italian operator also ranked first place for casino with GGR of €20.2m, representing a market share of 12.3%. During an interview with EGR Intel in October, managing director for digital and betting Italy Alessandro Fiumara attributed Lottomatica’s EBITDA growth and online performance to the conversion of retail players to online during Covid as omni-channel became even more relevant. The Rome-headquartered firm also completed a full platform migration of retail and digital onto a single platform following the acquisition of IGT assets. “We are currently on a new platform that is our proprietary platform, fully internally developed and managed by our IT department,” said Fiumara.

31. Stake

Widely regarded as the world’s largest crypto gambling site, Stake makes its debut in the EGR Power 50 five years after the business was established by Edward Craven and Bijan Tehrani in Australia. Craven, 27, reportedly splashing out an eye-watering $80,000,088 this year on a derelict mansion in Melbourne – the most expensive house purchase ever in Australia – underlines the kind of money Stake is generating for its reclusive co-founder. Shirt deals with Championship side Watford and Everton in the Premier League have raised Stake’s profile, although the Everton partnership wasn’t without controversy after more than 20,000 Toffees fans signed a petition calling for the Merseyside club to ditch their new principal sponsor. In September, Stake was hit with a lawsuit from a former associate who alleges he was cut out of the business in the early years, and there was more bad news when, in October, Twitch banned streams involving four crypto gambling operators, Stake being one. The firm could also feel the effects of the so-called ‘crypto winter’ as bitcoin sinks in value and the community deals with the fallout from the calamitous collapse of cryptocurrency exchange FTX.