Intralot Leverages Bally’s UK Expertise for Global B2C Expansion
Intralot is poised to tap into Bally’s International Interactive’s proven track record in customer retention to navigate the increasingly stringent regulations in the UK market while expanding its global B2C presence.
During a recent event in London, Bally’s CEO Robeson Reeves emphasized the operational strengths that Bally brings to the table, particularly regarding customer retention strategies in the UK. According to him, these strengths will serve as a cornerstone for Intralot’s growth in iGaming, sports betting, and iLottery segments.
At the same event, Intralot’s CEO Nikolaos Nikolakopoulos shared the ambitious plans of the merged entity to introduce one or two new B2C products annually in unexplored markets post-merger. Nikolakopoulos hinted that the company might explore partnerships with local media firms to amplify their reach, asserting that the group’s brand power would significantly enhance market entry efforts.
Bally’s current stature in the UK is noteworthy, holding the second position in the iGaming sector with a 14% market share. Reeves noted that while 94% of Bally’s revenue stems from the UK, this concentration comes with both benefits and challenges. The large UK footprint ensures stability, but heightened regulatory frameworks could pose risks if not managed well.
The operator boasts a database of six million players, with one million active monthly users. Reeves remarked that this extensive customer base enables lower spending per player, which enhances long-term sustainability.
Bally’s adaptations in response to recent UK regulations have improved customer experiences. For example, the company modified its online slots, making winning opportunities more frequent but at lower payouts. Reeves reported that these adjustments not only increased player engagement but also contributed to a boost in revenue, making the gaming experience more enjoyable and reducing negative player interactions.
Nikolakopoulos highlighted the substantial growth potential anticipated from better player retention and data monetization, foreseeing a remarkable €200 billion total addressable market (TAM) globally by 2029 across various segments, including iGaming and online sports betting.
The merger, expected to finalize by the end of the year, involves Intralot acquiring Bally’s International Interactive for €2.7 billion. This strategic alignment aims to create a leading iGaming and lottery operation with anticipated annual revenues of €1.1 billion. Post-merger, the new entity will be publicly listed on the Athens Stock Exchange and will operate across numerous markets with a dual focus on B2C and B2B lottery endeavors.
To compound the benefits, Intralot’s arrangement with Bally’s ensures that the group will share in the profits once they become available, presenting a low-risk opportunity to engage with the lucrative US market. The company’s expansion strategy includes the possibility of acquisitions of local brands in Europe, aiming to consolidate its presence amid a fragmented gaming landscape.
Reeves noted, “While our primary focus isn’t on M&A, we recognize the opportunity for targeted acquisitions that could bolster our position in the competitive European iGaming landscape.”