EGR Power 50 2023: 30-11
Proudly sponsored by
30. PENN Entertainment
PENN Entertainment’s 2022 EGR Power 50 entry focused heavily on the Barstool Sportsbook, however that brand has since been axed by PENN after news broke in August of a $2bn sports betting licensing deal with Disney-owned sports network ESPN. The switch from Barstool to ESPN saw the sale of the former back to founder Dave Portnoy for just $1, with PENN choosing to develop ESPN Bet on its own tech stack. Defined as an “exclusive and comprehensive alliance” by PENN CEO Jay Snowden, the partnership has the potential to make or break PENN in the US and if the early signs following the launch are any indicator, the partnership could be a lucrative one as ESPN Bet set a download record for sportsbook apps after just two days. With EPSN Bet live in 17 states, at the time of writing, PENN looks sure to make a leap up the rankings next time around. Prior to the launch, PENN’s interactive revenue for the first nine months of the year amounted to $687.3m, which was up from $455.1m for the same period in 2022.
29. Pinnacle
Pinnacle made headlines in May when it was announced that its long-serving CEO and the face of the company, Paris Smith, was stepping down after 17 years. Smith, who was one of the few female CEOs in the industry, has since transitioned to an advisory role. During her time in the top job, she was responsible for building the Curaçao-based operator’s reputation as a high-volume, low-margin giant, but elected to take a step back from the “intense day-to-day requirements of being a CEO”. Smith is also set to explore new strategic projects alongside Pinnacle chair Magnus Hedman. In other people news, Pinnacle promoted director of international development Aleksandra Sygiel to become chief revenue officer in January. The former LeoVegas head joined Pinnacle back in November 2021. Elsewhere, the operator led a C$10m strategic investment in esports-first startup Rivalry in April. At the time, Smith highlighted how Rivalry had “carved out a powerfully unique position in the field of online betting”.
28. Stake
It has been hard to miss this Australia-founded crypto giant as it dominated news headlines at several points throughout the last year. Stake continued to raise its profile with a raft of sponsorship deals in 2023, namely with the Alfa Romeo F1 team, Volleyball Nations League and the European Cricket Championship 2023. In the summer, CEO Ed Craven announced that the operator had its sights set on a large acquisition in the US. Although that has yet to materialise, Stake launched in Colombia in November, following its acquisition of Betfair’s local business from Flutter Entertainment. After approval from the regulator, Coljuegos, Stake now holds a licence to operate the stake.com.co site in the South American country until 2025.
However, it hasn’t been all plain sailing for the crypto-first operator as it was hit by a reported $41m hack in September, although all user funds remained safe. A few months prior, Stake and its streaming platform, Kick, were blacklisted from operating in Greece, while Chelsea FC pulled out of talks on a one-year front-of-shirt sponsorship with Stake due to supporter backlash.
27. Allwyn
Despite Northern & Shell boss Richard Desmond’s battle against the Gambling Commission ongoing, legal challenges from Camelot and IGT relating to Allwyn being awarded the fourth National Lottery licence in the UK fell by the wayside to leave the firm looking back on 2023 positively. In Q3 2023, Allwyn’s GGR leapt 98% YoY to €1.9bn, while adjusted EBITDA increased 16% to reach €368.4m in the same period. Management pointed to the acquisitions of Camelot and Camelot Lottery Solutions Group as driving the company towards the impressive financial results in the year to date. Allwyn is set to take over the UK National Lottery in February 2024, with its senior leadership confirmed in September. Former boss of music label EMI UK&I Andria Vidler joined as UK CEO in October, ex-William Hill head Alan Artz was named CFO, and Lotto New Zealand CEO Chris Lyman was snapped up for the COO role. Former Allwyn UK interim boss Robert Chvátal returned to his position as group CEO. At group level, Allwyn named its first-ever global chief people and culture officer after recruiting Casinos Austria stalwart Naida Buljugic.
26. Celton Manx
The Isle of Man-based operator, headed up by long-term chief Bill Mummery, has shifted one place up in the Power 50 despite its relatively low profile compared to its peers. Its SBOTOP brand managed to stay at the forefront of English football this summer after penning a front-of-shirt sponsorship deal with Fulham that will provide “significant revenue” to the West London club, according to the Premier League side’s commercial director, Jon Don-Carolis. SBOTOP had previously sponsored Leeds United since 2020, but that relationship came to an end following the club’s relegation from the Premier League to the Championship. With a focus on non-UK bettors, particularly in Asia, the upcoming voluntary front-of-shirt gambling ban in the Premier League by the start of the 2026-27 season could deal the group a blow, although shirt sleeve and in-stadia partnerships will still be allowed.
Speaking to Manx Radio in April, Mummery said that the ban was “a train that has been coming towards us for some time”, suggesting the business has prepared for the future.
25. Lottomatica
In big M&A news for the Italian market, Lottomatica – the parent company of GoldBet, BetFlag, Better and the Lottomatica brand – announced in November that it had acquired 100% of the share capital of SKS365, although we are keeping both companies separate in the rankings as the transaction has yet to complete. The €639m deal, which values SKS365 at 8.7x its full-year 2023 EBITDA pre-synergies, will see Lottomatica bolster its online market share in Italy to 28.3%, the firm said. From the deal, the Rome-headquartered operator expects to achieve cash cost synergies of €60m (including capex and cash synergies of €10m) alongside revenue synergies of at least €5m by 2026. For the first nine months of the year, Lottomatica reported group online revenue of €374m, up 30% on a pro forma basis YoY from 2022, while its online market share in Italy rose by 3.8 percentage points to 21.2% in Q3. Market share for online sports betting increased 3.1 percentage points to 20.4% and igaming grew 4.5 percentage points to 21.7%. Adjusted EBITDA was up 15% YoY to €426.4m. Confirming its financial guidance for FY 2023, Lottomatica anticipates revenue of between €1.63bn and €1.69bn, with adjusted EBITDA hitting between €570m and €590m.
24. BVGroup
June saw Gibraltar-headquartered BetVictor reveal a new corporate identity under the guise of BVGroup to house its entire stable of brands, including BetVictor, Heart Bingo, BildBet and talkSPORT BET. The umbrella company rebrand also coincided with the launch of a new B2C brand, Wiz Slots. BVGroup CEO Andreas Meinrad said the transition highlighted how “far the company has come from its bookmaker beginnings”. Elsewhere, former William Hill exec James Kennedy was named head of brand for talkSPORT BET in March after working on the BetVictor brand for two-and-a-half years. Finally, BetVictor continued its backing of international snooker events by securing a sponsorship renewal of the World Snooker Tour in June to become the title sponsor for eight events during the 2023-24 season, including the BetVictor European Series.
23. Yolo Group
A sixth consecutive year in the EGR Power 50 for Yolo Group coincides with a recent business restructure as it lays out its stall for future growth. The crypto-first operator will now comprise of Yolo Entertainment, Yolo Platform and Yolo Investments. Yolo Entertainment will house the group’s B2C operations, headed up by former Gaming Innovation Group (GiG) exec Matthew D’Emanuele as CEO. The group’s B2C division encompasses Sportsbet.io, Bitcasino.io, as well as Slots.io, with the latter added to the portfolio in 2019. Having been named crypto operator of the year at the EGR Operator Awards in October, the firm, led by CEO Maarja Pärt, is plotting further expansion. Speaking to EGR earlier this year at the company’s Tallinn HQ, Pärt said the company will continue to “find the relevant niche market […] rather than do what everyone else is doing”.
22. ComeOn Group
After entering the EGR Power 50 in 24th place last year, ComeOn Group has improved on its position in the rankings – and the multi-brand, multi-market operator is looking to shift its business model with a concerted sports betting and M&A push in the coming months. The privately owned firm is aiming to double revenue from sports betting operations over the next three years, which would see the vertical represent between 35% and 40% of total revenue. A partnership has been struck with Austrian sportsbook platform provider Arland to help scale the division. In terms of M&A, ComeOn Group management exclusively told EGR in August that the firm seeks to increase its standing in Italy and the UK, and is targeting B2C businesses with one or more active brands that use a localised approach, similar to its existing in-house strategy. ComeOn Group has also retained its commitment to adding leading talent in 2023. In January, former William Hill exec Sherwin Jarvand was promoted to chief data officer, while, in July, former OpenBet stalwart Nick Jones was hired as the new head of trading.
21. Tabcorp
After an eventful 2022 that included failed takeover bids from Entain and Apollo for its wagering arm, Tabcorp has had somewhat of a more low-key 2023. According to FY 2023 results, the Australian betting and gaming giant recorded a 2.6% uptick in revenue to A$2.4bn, while group EBITDA jumped 8.4% and EBIT more than doubled on a pro forma basis.Tabcorp is aiming to snare a 30% digital market share in Australia by 2025 amid strong competition from the likes of Flutter, Entain and bet365, yet digital revenue market share slipped from 24.9% to 24.5% during the reporting period. That said, digital turnover market share increased from 19.7% to 20%. A difficult start to fiscal Q1 2024 due to the “context of a softer
macroeconomic environment” was highlighted in October, although CEO Adam Rytenskild remains bullish on future growth and the company’s 2025 targets. Elsewhere, CFO Dan Renshaw departed the business at the end of August due to personal reasons. Coles Group exec Mark Howell is due to replace him by June 2024.
20. Hong Kong Jockey Club
Hong Kong Jockey Club (HKJC) makes it two years in a row in the rankings after a strong 12 months to 30 June returned full-year turnover of more than £30bn across both online and its two racetracks. Football betting delivered a strong performance, with turnover up 9.1% YoY to around £15.9bn, with the boon of the 2022 World Cup and addition of in-play bet types helping drive the vertical. This was despite CEO Winfried Engelbrecht-Bresges citing the post-pandemic operating environment as “equally challenging” as the peak of Covid-19. The operator has also reported strong growth in its World Pool product, with races from the UK and Ireland generating £475m in turnover in 2023. The firm said it was looking to expand its UK and Ireland World Pool offering after the strong performance, which saw prize money across the 131 races reach a record high of £32m. In February, jockey Frankie Dettori was added as a brand ambassador, a deal that involved the gregarious Italian fronting regular content and penning blogs ahead of race days throughout the year. Finally, HKJC’s community contributions jumped 6.8% to a record high of around £3.6bn in the 12 months to 30 June.
19. Playtech
The B2C arm of the London-listed supplier is among the leading pack in Italy thanks to its Snaitech subsidiary. Playtech revealed that Snaitech’s online revenue rose 12% YoY in H1 2023 to €131.4m and that online adjusted EBITDA climbed 10% YoY to €68.7m, with the bump attributed to “strong” growth across sports and casino. B2C, which also includes HAPPYBET and what is defined as “Sun Bingo and other B2C” brands, generated far more modest revenue of €10.3m and €34.1m, respectively, in H1, underlining how Snaitech, which leans on its retail network for brand exposure and omni-channel opportunities, dominates the revenue mix. Staying with Italy, a market the firm says is “underpenetrated” due to the country being heavily skewed towards retail betting, Playtech recently lost out in the bidding war to acquire SKS365, the parent firm of multi-channel operator Planetwin365. The news that Lottomatica had been successful in the pursuit of Planetwin365’s parent company sent Playtech’s shares tumbling. In a statement published on 2 November reacting to the failed takeover bid, bosses insisted that the group will “continue to take a prudent and rational approach” to evaluating acquisition targets. So, watch this space.
18. STS Gaming Group
With Entain’s £750m acquisition of leading Polish bookmaker STS only having closed in August, the firm will be able to relish a final swan song as an independent company in the rankings. Entain swooped for STS in June, which will see it become a part of Entain CEE, a joint venture between the FTSE 100 operator and EMMA Capital. Entain will acquire 100% of STS, with CEO Mateusz Juroszek retaining his position post-acquisition, as well as taking a seat on the Entain CEE board. The acquisition of multi-channel operator STS comes after the business reported a 14% YoY increase in betting revenue during H1 to PLN299m while adjusted EBITDA leapt 35% to PLN157m YoY. (Side note, STS doesn’t break out the online segment.) Juroszek said the firm had “continued to optimise processes” within the group during the first six months of the year. Part of this optimisation saw STS focus wholly on its Polish operations after phasing out its UK- and Estonia-facing offerings to instead grow market share in its native market. STS revealed there were 412,000 active users during H1 2023, with 109,000 of these being new customer registrations and FTDs amounting to 72,000.
17. Danske Spil
Despite having generated very few headlines the past 12 months, the Q3 financial results for Denmark’s state-owned operator showed that total revenue amounted to almost DKK3.7bn, an increase of DKK87m from last year’s Q3. Danske Spil said its FY 2023 guidance remained unchanged: revenue should fall between DKK5bn and DKK5.2bn, with net profit of DKK1.7bn to DKK1.8bn, which would match 2022’s DKK1.7bn. Back in July, the operator secured the title sponsorship of the Danish Cup for its Oddset brand. The deal runs for three years until the end of the 2025-26 season. Earlier, in May, Danske Spil joined a host of other operators in pledging funding to the Danish Gambling Committee. Danske Spil, Kindred Group, Betsson, Mr Green and Spilnu have committed more than £1m to the research committee based out of Aarhus University. The programme focuses on four key areas in Denmark: treatment of gambling addiction, prevention of harm among children and young people, preventing addiction within online gambling, and general knowledge gathering.
16. Lottoland
Lottoland, which celebrated its 10th anniversary during 2023, remains the dominant player in the bet-on-lottery segment with dozens of lottery products from around the world served up for its customers. This was validated when the Gibraltar-based operator, which is active in 15 markets, scooped the lottery operator category at the EGR Operator Awards 2023.
In terms of key developments, last December Lottoland rolled out new keno game KenoGo in Australia after being one of two companies to be awarded a licence in the state of Victoria. Then, in February, the firm was successful in its attempt to overturn a blocking order by Germany’s regulator, Die Gemeinsame Glücksspielbehörde der Länder (GGL). The Higher Administrative Court of Rhineland-Palatinate in Koblenz ruled that the GGL had no legal basis to bar Lottoland’s sites in Germany. The operator has also made significant gains in Brazil, increased consumer awareness in the UK via national campaigns, and diversified its product portfolio by adding new games, including exclusives. Lottoland, which employs more than 400 people, has been on a recruitment drive the past year and has formed hubs in Spain and the UK to retain talent. It also continues to be a leader in sustainability, especially safer gambling initiatives.
15. FL Entertainment
Having floated on the Euronext Amsterdam last year, FL Entertainment – the parent company of Betclic and bet-at-home – saw its online sports betting and gaming revenue jump 21.3% in cc to €718.5m for the first nine months of 2023. Along with an increase in revenue, the group reported total unique active players were up 34% in the first three fiscal quarters of 2023 thanks to “new innovative features” including instant payments, as well as successful cross-selling. Bet-at-home, which has faced some difficulties in recent times and has cut its full-year revenue expectations due to lower-than-predicted sports betting margins in Q3, outsourced its tech stack to EveryMatrix earlier this year. Management expects this switch to result in market share increases based on “a more attractive product experience”. Elsewhere, Betclic CEO Nicolas Béraud gave his two cents on the debate regarding French online casino regulation by imploring the government to consider legalising the vertical. He claimed there were over one million players in France gambling on the black market and insisted the tax the state was missing out on was too large to ignore.
14. Superbet Group
The past 12 months have been punctuated by headline-generating comings and goings at the Blackstone-backed CEE operator. In February, founder and chairman Sacha Dragic stepped down and was replaced as chairman by Hans-Holger Albrecht, former CEO of music streaming platform Deezer, in preparation for Superbet’s possible IPO. Shortly afterwards, ex-Huffington Post (now HuffPost) CEO Jimmy Maymann was appointed deputy chair, while Superbet announced in November that CEO Johnny Hartnett will depart in the new year, with Maymann taking up the reins as CEO. There was also a new COO hired this year, in the shape of ex-William Hill International CEO Stephen Parry, former Mothercare and IWG chief Glyn Hughes unveiled as the new CFO, and Andrei Dușu made chief business development officer. In June, when the appointments of Parry, Hughes and Dușu were announced, Hartnett commented how the trio will play a critical role in Superbet’s ambition to “take the business from our home in CEE to the rest of Europe and beyond”. The fact that Superbet owns its own tech, which has formed the backbone of growth down the years, means the operator’s name often gets banded about when it comes to the lively rumour mill speculating on potential M&A.
13. Kaizen Gaming
A strong financial showing from Kaizen Gaming in 2023 – shared privately with BDO – has propelled it up the EGR Power 50. Indeed, the Betano and Stoiximan parent company saw net gaming revenue and monthly active users soar YoY for the trailing 12 months to the end of June. On an operational front, the Greek operator cut the ribbon on a new ‘Kaizen Campus’ HQ: a state-of-the art, three-storey building on the outskirts of Athens. Meanwhile, a couple of key hires to note were former Colossus Bets COO Eva Karagianni-Goel as senior advisor for operational excellence, and ex-William Hill head Vangelis Skarkalis as commercial director. Elsewhere, Kaizen Gaming once again shone at the EGR Operator Awards in October, taking home five trophies, including sports betting operator and best in-house product, while finishing second in the headline operator of the year category, which the firm scooped in 2022. Kaizen Gaming was also named brand of the year at the EGR Marketing & Innovation (M&I) Awards in June. Meanwhile, the group flexed its marketing muscles again in 2023, with Stoiximan landing the title sponsorship for the Greek Super League, and NBA star Giannis Antetokounmpo named as a brand ambassador for Betano. It’s also worth noting that Betano is thought to occupy a podium position in Brazil ahead of the country’s long-overdue regulation.
12. Fortuna Entertainment Group
While the Prague-headquartered operator stays in 12th spot, it is still a major force in its CEE heartlands as the Fortuna brand has been around over 30 years. Combine this presence with an extensive retail network for omnichannel gains and a localised online product in Czechia, Slovakia, Poland, Croatia and Romania, and it explains why Fortuna Entertainment Group (FEG), which also owns PSK in Croatia and Romanian bookmaker Casa Pariurilor, is often singled out by industry observers as one to keep an eye on. Indeed, CEO Victor Corcoran, who joined from Paddy Power last September following Per Widerström’s departure, told a podcast in March his privately owned firm had a “significant opportunity” to take market share. However, the Irishman caveated this by conceding the business faced short-term challenges, including the war in Ukraine, the economic downturn and spiralling inflation putting the squeeze on discretionary spend. FEG has also been vocal about the proliferation of grey market operators in Poland and, so, Fortuna teamed up with rival STS in May to launch a ‘Play legally’ marketing campaign to encourage consumers to only bet with licensed entities.
11. MGM Resorts International
Knocking on the door of the top 10, the Las Vegas-based casino group’s online interests include LeoVegas Group, acquired for $604m in 2022, and a 50% stake in BetMGM as part of the long-running JV with Entain. Starting with LeoVegas Group, the company’s digital operations are spearheaded by LeoVegas, a Swedish-born casino operator, and supported by a stable of brands including casino sites Pink Casino and GoGoGoCasino as well as challenger bookmaker BetUK and legacy Swedish brand expekt, to name a few. Earlier this year, LeoVegas Group unleashed BetMGM in the UK, with US actor and comedian Chris Rock fronting the slick above-the-line campaign. The fact MGM opted to go with its subsidiary for the launch in the UK speaks to LeoVegas Group’s know-how and experience in what is a notoriously hard market to attack with a new offering. Meanwhile, BetMGM is the third largest operator in the US based on sports betting and igaming GGR across the 23 online jurisdictions where the brand is available. Once the clear leader in igaming, with 31% market share in Q3 2022, this omnichannel operator’s position has been eroded somewhat, though, as rivals ramp up their promotions and product offerings.