Bally’s CEO and soon-to-be Intralot boss Robeson Reeves has said the combined entity can be a “great consolidator” in the UK igaming market, as he hinted at further M&A.
Speaking as part of Intralot’s Capital Markets Day yesterday, 8 September, Reeves stated that Bally’s is currently the number two igaming operator in the UK, with a 14% market share.
The CEO added that the business has more than six million users in the market, with Bally’s International Interactive running a host of UK-facing platforms.
Those include Jackpotjoy, Double Bubble Bingo and Bally Casino. The operator’s Gamesys licence also includes a host of white-label sites, including Monopoly Casino and Virgin Games.
The vast majority of Bally’s International Interactive revenue is derived from its UK-facing operations, with smaller platforms live in markets including Spain.
Reeves, who will become CEO of Intralot once its €2.7bn purchase of Bally’s International Interactive completes in Q4, said M&A was on the agenda to strength its position in the UK.
Reeves suggested that potential tax harmonisation or increases in the UK could see some small operators look to exit, with Bally’s in a position to “grow faster”.
The UK Treasury has closed a consultation on bringing pool betting duty and general betting duty up from 15% to 21%, in line with remote gaming duty.
There are fears that tax rates for online casino could increase further. However, Reeves said Bally’s was well positioned to deal with any changes, regardless of what revisions are laid out in the Autumn Budget.
Reeves remarked: “For M&A, I think there’s a few different angles. There are opportunities in some territories that we might not be present in, where we might feel that it’s better to access that market if it’s got something very distinct and unique.
“We are very interested in some acquisitions in the UK market. I find it quite exciting when I think about the impact that could come from tax increases because some people will want to walk away from that market.
“I believe we would be a great consolidator. I would love to add more revenue to our platform, be it in the UK, Spain, Nordics or other territories.
“We will be very disciplined and careful. We will make sure that we can get synergies out of the deal. There is always going to be a careful eye on making sure we deliver our promises to our shareholders where we’ve talked about appropriate leverage.”
On potential UK tax changes, Reeves noted that due to Bally’s existing igaming-first approach, it could better deal with any changes.
The operator only added sports betting to its UK-facing offering last year via its partnership with Kambi.
Reeves said: “They’re [the Treasury] saying maybe the 15% [rate] becomes 21% alongside igaming. That would have little impact on us. It would have material impact on our peer group.
“It will go up. I don’t expect it to be particularly significant because of the danger of displacement to the black market. I believe this government is very aware of that.”
The post Bally’s CEO: We can be a “great consolidator” via UK M&A first appeared on EGR Intel.
Robeson Reeves claims multi-brand operator is the number two business in UK online casino with a 14% market share, as he notes potential tax hikes would impact competitors more than Bally’s
The post Bally’s CEO: We can be a “great consolidator” via UK M&A first appeared on EGR Intel.