iGB Intelligence reports iGB Market Monitor December 2017 | Page 9

Part 1: The UK market – a split screen said, as with the rest of the chasing pack, it is now Foxy brand (see below), Rank (Mecca Bingo) playing catch-up with the market leaders and and Gala remain tough competitors, and other new chief executive Peter Jackson will need to players such as Stride mean that bingo is just demonstrate some early wins in his stewardship – as competitive as sports betting with, arguably, which officially begins in January – to encourage lower barriers to entry. enthusiasm among the troops. GVC Stars Group The UK is definitively not GVC’s main market, From a UK perspective, perhaps the most although it is increasing in importance due interesting aspect of Stars Group’s progress in in part to the recent Turkish disposal and the recent years has been the dog that didn’t bark ongoing reinvigoration of the Party and Foxy – namely the sportsbook, where the UK was brands. Moreover, given the persistent chatter the target launch market and where its debut regarding GVC’s likely further participation in fizzled rather than fizzed. We can suggest various any M&A within the sector, its UK footprint reasons for the apparent failure. Technical issues will likely increase. As it stands, the company’s played a part, both in terms of back end issues efforts to weld the business together has seen and poor UX, along with the age-old suggestion it increase the pressure on the market leaders in that poker players just aren’t that into sports (an poker and bingo. But should the much-rumoured argument that has run for years). But the aspect deal with Ladbrokes Coral come about, it would that looms large is the competitive nature of the automatically place the company at the centre of UK market. When it comes to sports betting, it is the sports betting fray to which Sportingbet, for very difficult to match the offerings of the market all its relatively long history, has been something leaders. Bearing this in mind, it was illuminating of a bystander. How it would juggle the demands that during its third-quarter earnings call with of a challenged, land-based gaming business and analysts, chief executive Rafi Ashkenazi said that an under-strength digital business is arguably a the company would be looking to buy revenues different scale of task from previous acquisitions. in sportsbook, either through acquiring “one The City will like it, but that is rarely the vote of big company or three to five small to medium confidence many presume. companies.” 888 Jackpotjoy The run-in that 888 has had with the UK The somewhat convoluted process of Jackpotjoy Gambling Commission has rather obscured its (Intertain in its previous existence) achieving UK- decent results at the halfway point of the year. In listed status and managing an (almost) orderly B2C terms, total revenue growth stood at 6% with transition away from dependence on Gamesys casino also hitting that figure, poker increasing means we now have a clearer idea of the position by 1%, sport up 35% (from a low base) but bingo of the UK market leader in bingo (and games). down 15%. It has hard to say what effect the Leyland from Regulus suggests that in the third closer regulatory scrutiny will have on 888’s quarter the Jackpotjoy brands achieved single- revenue line. The company has been instructed to digit growth in the UK, albeit with significantly overhaul its marketing activities and this is sure to increased marketing spend (up 53% year-on- have an effect on how the company operates. But year.) He adds that this “should allow growth with recent shareholder moves presumed to have to continue”, though what happens when the cleared the decks for more M&A, the company taps get turned off poses its own questions. The might not be independent by the time we get to market remains highly competitive: GVC has see the verdict. recently reinvigorated the otherwise moribund iGaming Business Market Monitor • December 2017 6