Branching out: BoyleSports CEO on expansion into new markets

Vlad Kaltenieks gives a wry chuckle when asked why he thinks he emerged victorious after a six-month search, led by BoyleSports founder John Boyle, to replace CEO Mark Kemp who departed the operator in June 2022.

“You’ll have to ask John,” the Latvian quips. It has been a stellar rise for Kaltenieks since joining the gambling industry back in January 2016 with Betsson Group as a director of digital and data. Two-and-a-half years later he was snapped up by William Hill as global director of data, analytics and digital. It is this background in data and being at the cutting edge of technology that Kaltenieks attributes to his arrival to the top of BoyleSports.

He says: “I perhaps fell into data at a time when it wasn’t as sexy as it is now, but it held promise. Throughout my personal and professional development, having worked across different industries, I understand what’s important on the critical path and how to bring people on that journey. I think that’s something that appeals to John and BoyleSports.”  

Kaltenieks officially started the job in February after being announced as Kemp’s replacement in December. It is clear he continuously thinks of the bigger picture. The CEO tells EGR that BoyleSports appealed to him as a “very successful, privately owned business” but it is now his challenge to drive the business forward.

An expansion on the retail core has seen shops snapped up across the UK in recent months, while a concerted effort to improve the digital offering and spreading the brand’s wings geographically are also on the to-do list.

It is lofty ambitions for a family-owned firm that has carved out its position as Ireland’s go-to retail bookmaker amid the big players in the space.

Kaltenieks pays homage to this fact, noting: “We have people with experience of being in the company for more than 20 years and it is great to see. We are bringing some new faces for energy too. It has been great so far to understand the trajectory of the business and evaluate its strengths and see where we want to push more.”

The new CEO says his time at Betsson and Hills instilled one key takeaway which he plans to use during his reign at BoyleSports. “Strategy is a living thing,” he divulges. “It’s essential to understand what we are trying to achieve. It’s okay to make mistakes but creating that environment when you learn, and perhaps even fail fast, is super important.”

Peruse the scene   

After the extended search process for Kemp’s replacement finally ended, the new CEO wasted no time in putting his stamp on the traditionally retail, and UK- and Ireland-focused firm. BoyleSports confirmed the somewhat surprise acquisition of Peruvian operator Timberazo in April as it looks to tap into the growing Latin American market.

The pair previously operated on a joint venture basis, but BoyleSports will now deploy its proprietary tech and capital to combine with Timberazo’s local knowledge to make a concentrated push in the market. The likes of Betsson’s Inkabet and Apuesta Total dominate Peru, but the seven-year-old Timberazo will be looking to challenge the hegemony.

Kaltenieks says: “When we looked at the opportunities, particularly in Peru, we were looking for a partner we could work together with and complement their offering with what we have. Timberazo was a brand that needed extra expertise and an injection of energy, whether that is monetary or technological, to start that drive.

“We’ve already seen some brands have some success in Peru, but I think with the combination of our technology expertise and their local knowledge, we can make some good headway,” he adds.

The CEO notes the importance of treating each market in Latam as its own beast rather than applying a homogenous approach to the region, which some foreign operators have been guilty of. Kaltenieks also confirms that there is a multi-year plan in place which he insists is “optimistic and ambitious” but that there is plenty of room for growth during the journey.

He adds: “I like to set ambitious goals and then work with the team on making sure we’re moving in the right direction. If we need to adjust something, then we’re able to do that. It’s a good opportunity for us to learn about new markets.

“Each of the countries in Latam have their own specifics, so it’s a great opportunity for us to understand what makes the customers tick and subsequently how we adjust our approach to be successful in different jurisdictions.”

And with BoyleSports spreading its wings via M&A, Kaltenieks notes that the strategy will continue to play a key role moving forward. Acquiring a local player is usually the quickest route to market, and with capital seemingly on hand to deploy, plus the envy of an in-house tech stack, the group can be particular about which firm it chooses to target. For the BoyleSports boss, it all comes down to the “right opportunity”.

“My philosophy is a good company for good money, and that’s one of the criteria we use. Another is looking at the market and understanding what the situation is there, such as competition and socioeconomic conditions. We also need to look at our plan for the market and how we realistically make a positive impact. When there is the right opportunity, we’ll definitely look at it and consider it as investment,” he remarks.   

Bless the rains down in Africa  

Under the Latvian’s tutelage, BoyleSports is well and truly breaking out of its UK and Ireland heartlands. Alongside the push in Latam, Kaltenieks confirms that the BoyleSports brand will make its debut in South Africa, marking the first time the company has launched the brand outside of the UK and Ireland. A small office has opened on the southern tip of the continent housing customer services, trading and marketing teams, with support from a central services and financial perspective.

Kaltenieks tells EGR he wants to give his South African unit the “autonomy to execute” and he will “support them in that execution where it makes sense”. BoyleSports is planning to tackle the market at the same time as African operator KingMakers also gears up for entry, while the likes of Betway, Hollywood Bets, Betfred and Lottostar all hold significant market share in the nation.

In fact, KingMakers is partnering with broadcasting firm MultiChoice to leverage its reach throughout South Africa. However, Kaltenieks is quietly confident in BoyleSports’ chances of success.

“We’re focusing on South Africa because it’s a very interesting market. It offers us the opportunity to learn about our own technology and how the brand works outside of Ireland,” the CEO notes. “We will be continuously thinking about how to make BoyleSports relevant to a particular market.

“At the moment we are on a third-party platform and we’re looking to bring in our own technology. I think that will be telling because then it will be a different story from some of our competitors.”

Heading northwest over the Atlantic Ocean to Canada, the province of Ontario is the third market BoyleSports is looking to make its mark on as part of its new international outlook. Ontario, which celebrated its one-year anniversary on 4 April, has proven to be a fierce battleground in its embryonic stages with colossus marketing budgets and a raft of operators looking to tap into Canada’s most populous province.

However, this has seen the likes of Coolbet pull out of the market due to difficult conditions, while a late-mover advantage may prove to be too slow to gain a meaningful share for BoyleSports.

However, Kaltenieks’ confidence shines through again, and the coy bullishness he deploys encompasses both caution and calculations. He says: “We still think that Ontario holds an opportunity but we’re going to take a more consciously longer-term outlook on the market and the North American opportunity as a whole. I think that south of the border in Latam there are better opportunities for us at this moment.”

With plans to spread out geographically, there is little need to put all its eggs in one basket, something the ex-Hills head recognises. He continues: “We will be monitoring Ontario and what’s happening there, particularly as we had some exits from that market recently and some changes in regulation, whether that’s around marketing or affiliation, and subsequently the cost of doing business has gone up significantly. To summarise, our plan is to monitor and then adjust the direction of travel as needed.”  

Home sweet home  

After being founded in 1982 by John Boyle, BoyleSports opened its first shop in Markethill in County Armagh, Northern Ireland, before heading south to County Louth and beyond. The company is now based in Dundalk, some 84 kilometres north of Dublin and proudly sits as the largest independently owned bookmaker on the Emerald Isle. Amid the international expansion, BoyleSports’ home market is set to undergo its largest legislative change in generations with the introduction of the Gambling Regulation Bill.

The legislation will see the launch of a new regulator, the Gambling Regulatory Authority of Ireland, a ban on ads on TV and radio between 5.30am and 9pm and the outlawing of enticements such as VIP programmes and free bets.

Kaltenieks confirms the operator has been in close talks with various stakeholders regarding the regulatory shift, and notes there has been some “good steps around player protection”. However, the CEO is also erring on the side of caution, highlighting the “unintended consequences” that could arise out of the changes.

When pushed on what he means by these consequences, Kaltenieks says: “I think from a player safety perspective, the biggest impact could be driving spend to the black market. Our intention is that the provisions in the bill are uniformly applied and that operators that are not licensed in Ireland are prevented from being able to operate there.”

He also holds these black-market fears over the Irish Sea following the publication of the white paper into the Gambling Act 2005 review in the UK. Kaltenieks and his team huddled around the TV screen to watch Department for Culture, Media and Sport (DCMS) chief Lucy Frazer deliver her speech in the House of Commons on the proposals, an image akin to taking in a coronation or Premier League title parade. He praises some of the measures taken and once again emphasises the importance of providing a safe arena for punters, rather than encouraging black-market leakage.

“The UK is taking a pragmatic and long-term view on sustainability,” he comments. “There will probably be some financial impact, but I think in the long term it will create a sustainable market, which is important to protect the vulnerable while allowing for a regulated framework for casual punters.

“I think we need to see how the details are being worked out to make sure it is done in the most effective way without intruding too much into punters’ privacy. We welcome the regulation, and we will be working to understand what we need to do from our end to be at the forefront of compliance.”

In your hands

“You own your destiny in terms of your ability to deliver what’s right for your customers. And that is a unique proposition, a unique opportunity to leverage. We will continue to invest in our platform and building what’s right for our customers and business,” Kaltenieks says when talking about the power of proprietary technology.

It is a debate that has rumbled on in recent years, with the likes of DraftKings snapping up SBTech with dreams of becoming an in-house star, while Bally’s has seemingly dropped its internal aspirations after penning deals with Kambi and White Hat Gaming.

For a smaller operator such as BoyleSports, in-house tech could be a true differentiator against similar-sized firms, especially when considering the top-heavy consolidation in the UK among the leading operators. Kaltenieks points to speed of delivery as the key benefit of owning the tech, highlighting the ability to quickly launch golf markets on the site without adhering to lengthy project timelines from third-party firms.

The CEO is also plotting to drive omnichannel gains via in-house tech. With more than 375 retail shops across the UK and Ireland, and the consistent growth seen in the group’s digital arm, joined-up thinking is now needed to deliver on both customer experience and business success.

The group has launched a new campaign to promote its omnichannel capabilities, with Kaltenieks adding: “I think omnichannel offers a lot of convenience for punters and I definitely see that omnichannel proposition and that connectivity between the retail and digital going from strength to strength. Our main focus is on complementing our retail proposition with an equal digital experience and bringing them together via omnichannel.”

Kaltenieks is also banking on in-house tech to help the operator dive into new ventures, including personalisation, while continuing to improve on the products already available to its customers. He continues: “There’s a lot of talk around personalisation and I want to explore that, but I also want to continue investing in bet builders or doubling down on customer experience. We’re doing a combination of that and making sure we are on the right path.”

BoyleSports and Kaltenieks are taking the new steps for the first time together. The Baltic native is relishing his role as CEO and is looking to expand the traditionally retail-focused firm forward. Geographic expansion, especially into Africa and Latam, and a planned M&A drive is a brave new world for the bookmaker.

Retail will always hold a “special place” for BoyleSports says Kaltenieks, but there is a zeal to deliver a top-tier digital offering. The CEO insists proprietary tech will be core to this, and omnichannel gains will also be borne out of a commitment to put customers at the forefront of operations.

“Our focus is around building sustainable features. Its investment in our people, in differentiating our product and making our experience personal for customers. We have to refine these areas, refine our North Star and go from there,” he explains.

The next 12 months may well be telling in BoyleSports’ history. Should the group secure cut-through in Peru and Latam, with thoughts of further expansion in Western and Eastern Europe, it will provide a differentiator to its retail-heavy UK and Ireland mix. Regulatory headwinds in the UK and Ireland will also prove a challenge, but a strong sponsorship portfolio and commitment to market should see the firm emerge through the other side unscathed. But, as Kaltenieks says, BoyleSports has the “energy and potential to take the next step”.

After an arduous search for a CEO, John Boyle seems to have found the right man for the job. “I think the business is doing well and I’m looking to capitalise on that and see what’s next,” Kaltenieks remarks. The world is its oyster for the plucky bookmaker from Ireland, and Kaltenieks is primed for the push.