Key Moments:
- Intralot has identified Bally’s International Interactive’s UK customer retention capabilities as central to its global B2C expansion strategy.
- The combined group targets launching one to two B2C products annually in new markets following completion of the merger.
- Intralot has announced a €2.7 billion acquisition of Bally’s International Interactive, with expectations to close the deal in Q4.
Bally’s UK Expertise to Guide Intralot’s B2C Strategy
Intralot is set to capitalize on Bally’s International Interactive’s strengths in customer retention in the United Kingdom, using these capabilities as it aspires to construct a prominent B2C presence worldwide. During Intralot’s Capital Markets Day in London, Bally’s International Interactive CEO Robeson Reeves underscored the business’s efficient retention operations in the UK market, highlighting their relevance for Intralot’s ambitions to build out B2C offerings across iGaming, sports betting, and iLottery segments.
Intralot CEO Nikolaos Nikolakopoulos, addressing the same audience, stated that post-merger, the group intends to introduce one or two B2C products in fresh markets each year. In some cases, this rollout would involve partnerships with local media companies, using their established brands to enhance reach. While Nikolakopoulos did not disclose specific partnership targets, he argued the combined group’s brand would be an influential asset.
Dominance and Diversification in the UK Market
Reeves highlighted that Bally’s holds the number two position for iGaming in the UK, commanding a 14% market share. Despite maintaining a limited presence in Spain, 94% of the operator’s revenue continues to originate from the United Kingdom. Reeves explained, “We’re very UK dominant. [But] this combination [with Intralot] allows us to spread out our revenue. It’s good and bad being UK dominant, you know? You might say you’re too concentrated. [But] regulation means that you end up with a stable, reliable business,” he told analysts and investors.
Reeves further revealed a database of six million players, supporting one million monthly unique users. He added that this results in a relatively modest spend per player, enhancing long-term sustainability.
Retention Success Amid Regulatory Changes
Bally’s proactive response to increased UK regulation, especially around stake limits for online slots introduced in April, has enhanced player retention. Reeves explained that Bally’s adapted its offering to provide more frequent wins at lower multiples, such as 10x the stake. These adjustments have not only improved player experience but also contributed to revenue growth.
Reeves stated, “We’ve seen that boost customer attention. And hence boost revenue, because players don’t have as many bad experiences.” He continued, “Igaming growth was driven by return to play optimisation strategies. We actually adjusted what we paid back to players more because of regulation.
“We’re always thinking about what is the right environment for customers to engage with. Also, normal organic market growth has occurred, boosting our revenue, and our active user base has increased. It makes sense given we’re retaining customers better.”
Significant Market and Financial Goals
Nikolakopoulos addressed the anticipated opportunities arising from better monetization of player data and sustained player retention efforts. According to FY2024 results, Bally’s International Interactive reported €709 million in run-rate revenue, alongside a 40% adjusted EBITDA margin. Reeves also noted a consistent CAGR of 10% for Bally’s business since 2019.
Looking ahead, Intralot expects that, as a combined entity, the UK and Spain iGaming markets will deliver a total addressable market (TAM) of €14 billion by 2029, with the global TAM projected to hit €200 billion across iGaming, online sports betting, and lottery services in the same period.
| Market | Cumulative TAM by 2029 (€) |
|---|---|
| UK & Spain iGaming | 14 billion |
| Global (iGaming, Sports Betting, Lottery) | 200 billion |
Merger Timeline and Expansion Plans
Intralot’s planned €2.7 billion acquisition of Bally’s International Interactive, announced in July, is anticipated to close by the fourth quarter. This union aims to form a global leader in iGaming and lottery, targeting €1.1 billion in annual revenues. The new group will be listed on the Athens Stock Exchange and operate B2C as well as B2B lottery businesses across diverse global markets.
An agreement is in place that will allow the group to capture a share of Bally’s profits as soon as the business turns profitable. Reeves stated during the event, “We’re maintaining exposure to the US without taking on the downside risk, which is significantly valuable.” The group also plans to launch its own iGaming product in the US, drawing on Intralot’s established B2B lottery presence.
Additionally, the B2C growth strategy may include selective acquisitions of local brands. Reeves added, “Although it’s not a primary focus to go after M&A, we think that there could be some selective acquisitions because of the fragmentation that you see across the European B2B and B2C gaming space.”
- Author
Daniel Williams
