Bally’s Intralot has reported a significant increase in customer acquisition in the United Kingdom following the recent hike in the Remote Gaming Duty, announced CEO Robeson Reeves during the company’s first-quarter earnings call on Wednesday. This development is attributed to a strategic response in marketing efforts amid reduced competitor spending in the region. The observed growth underlines its adaptive approach in what has become a challenging regulatory environment.
The company’s online platform saw a more than 60% rise in new customers in the second quarter, attributed largely to the competitive landscape shift after the UK increased the Remote Gaming Duty on April 1st. Reeves emphasized the company’s technological capability to capture transitioning customers from rival platforms by optimizing marketing expenditures. Reeves noted, “Our platform effectively anticipates customer shifts, allowing us to strategically position our advertising efforts and maximize our marketing budget.”
The UK remains a significant market for Bally’s Intralot, accounting for 64% of the company’s group revenue in the first quarter, with earnings reaching €172.1 million. The UK online business experienced a 10.5% growth on a constant currency basis during this period, and preliminary figures for April show an additional 11.5% revenue increase. Reeves also pointed to market consolidation as smaller operators exit, reducing acquisition costs and impacting revenue per user.
In terms of regulatory developments, the UK Gambling Commission’s ongoing exploration of financial risk assessments could influence market dynamics. These assessments aim to introduce affordability checks following a pilot scheme. Reeves, however, downplayed potential risks, suggesting Bally’s Intralot’s clientele exhibits stable spending habits, which could mitigate the impact of such measures. “Our model is built on sustainable spending, ensuring stable growth through customer retention and loyalty,” he stated. Nonetheless, he acknowledged potential friction for consumers, stressing the importance of maintaining player engagement within the regulated market to avoid unsafe gambling practices.
Moreover, Bally’s Intralot is progressing with its potential acquisition of Evoke, following a recently extended deadline for the offer. Group CFO Andreas Chrysos confirmed ongoing discussions, highlighting the satisfaction with progress across various operational areas. The decision to extend the offer timeline until June 8th allows further time for comprehensive evaluations necessary for a binding offer. The proposed acquisition would involve an all-share offer valued at £0.50 per share.
Industry analysts have raised questions about Bally’s Intralot’s intent to acquire Evoke, considering its financial losses and existing debt. Evoke reported a loss of £541 million for the fiscal year ending 2025, posing potential risks alongside the anticipated benefits of such an acquisition.
Looking ahead, Bally’s Intralot’s strategy involves adapting to evolving regulatory frameworks and market conditions in the UK. The forthcoming months will be pivotal as the company seeks to finalize its decision regarding Evoke and navigate the implications of the Gambling Commission’s affordability checks. The outcome of these initiatives will likely shape the company’s market trajectory and competitive positioning in the UK gambling sector.
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