iGB Affiliate 50 AprMay | Page 44

FEATURE INTERVIEW: JOHN KENNEDY FITZGERALD, CEO, INTERTAIN Intertain is the Canadian iGaming company currently making waves over in Europe, having spent more than $800m on the InterCasino, Vera&John, Costa Bingo and Jackpotjoy brands in the space of just 18 months, as it sets its sights on becoming the dominant global operator focused on the female demographic. We spoke to CEO John Kennedy FitzGerald to find out how he plans to execute this strategy, the timing and structure of the Jackpotjoy deal and new markets on the radar. Intertain has, via acquisition, transformed from a holding company into a significant listed iGaming operating business in a very short time. How did this come about? CFO Keith [Laslop] and I founded the concept and idea, and even though we have been public for a year, having floated last February, have been working on the project for over 30 months. The acquisition of InterCasino from Amaya was the base for us to take our project public, and the plan was and continues to be turn around the InterCasino business, and launch a series of acquisitions that would put us in a dominant position in the online bingo space. I feel that most of our competitors are focused really on the male audience, so I think there was a huge opportunity to get into that dominant position with a focus on the female demographic with a bingo led offering. What’s really exciting for me is that our peers whom we are compared against are already global businesses. In fact, they are shutting down jurisdictions just because of the regulatory risks associated with those. We however have this massive business now that is really only in the UK, Spain and Sweden, with a global opportunity to take our business into new, regulated 42 iGB Affiliate Issue 50 APR/MAY 2015 jurisdictions. What I love about our business is we now have one of the highest percentages of online gaming revenues – over 80% - from regulated jurisdictions. give you of the UK market? With this acquisition, we are going to end up with 26-27% of market share among those operators with a bingo-led “We now have one of the highest percentages of online gaming revenues in the global sector - over 80% - from regulated jurisdictions.” We are very proud of that fact, and we are going to get better at increasing that percentage up towards 100%. You however started off by acquiring two dot.com casino businesses, and then two female-focused businesses in regulated markets. How will these two components work alongside each other? You have to remember that over 65% of InterCasino’s business comes from the UK, so it’s a very large UK business. And it’s got a heavy slot focus. But yes, we will be focused on the female demographic generally across all our businesses, based on a bingo-led model. You recently added the Jackpotjoy brand to the Costa Bingo properties you acquired last year. What share does this product, with I think the nearest competitor being Sun Bingo, with around 14%. So we are in a very strong position and given that we have traditionally operated on very good margins, we feel the place-of-consumption tax that was recently introduced in the UK is going to further help our business. It’s going to create opportunities for us, because some smaller players that have been operating on lesser margins are going to find themselves in a difficult situation. So we think our organic growth prospects in the UK are still quite good. You agreed decent premiums for Costa and Gamesys ahead of the point-of-consumption tax (PoCT) coming in. Was this not a risky strategy, given the UK bingo market has been flat of late, analysts are spit over the impact