Intralot cites Bally’s retention strengths as driver of B2C ambitions 

Bally’s International Interactive CEO Robeson Reeves has this week talked up the business’ strengths in customer retention in the UK. He noted these areas of expertise would be the driving force for Intralot’s B2C iGaming, sports betting and iLottery expansion.

Speaking alongside Reeves at Intralot’s Capital Markets Day in London Monday, current Intralot CEO Nikolaos Nikolakopoulos said the combined group had ambitions to launch one or two B2C products in a new market every year, once the merger completes.

Intralot to launch B2C in new market every year

In at least one case, Nikolakopoulos said the group would operate a joint venture with a local media company to leverage its brand and reach within the market. Nikolakopoulos did not say which market or media brand the operator would partner with, but he said the strength of the group’s brand “would make a difference”.

On Bally’s presence in the UK, Reeves said Bally’s was the number two brand for iGaming in the market, with a 14% share of the total market. Today the operator also maintains a small presence in Spain, although the UK remains 94% of its total revenue split.

“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.

“We have six million players in our database and one million monthly unique players. That means that we actually have a relatively low spend per player, but that makes it sustainable forever.”

UK online stake limits improved Bally’s retention efforts

Retention, Reeves said, was a particular strength for Bally’s, thanks to the operator’s efforts to adapt to increased regulation in the UK.

Bally’s adapted its offering to provide players more chances to win on online slots but at lower multiples, like at 10x of their stake. Implemented as a response to online slots stake limits enforced in April, he said enabling players to win more often had improved the overall customer experience.

“We’ve seen that boost customer attention. And hence boost revenue, because players don’t have as many bad experiences,” Reeves said.

“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.”

Combined Intralot Bally’s group eyes €200 billion global TAM

Nikolakopoulos told the audience he expected the group to see a “significant upside [from] the monetisation of player data and the retention of players”.

In its FY2024 results, Bally’s International Interactive reported €709 million in run-rate revenue, alongside a 40% adjusted EBITDA margin. Reeves also said the Bally’s business had maintained a consistent CAGR of 10% since 2019.

As a combined group, Intralot expects the UK and Spain’s iGaming market to have a cumulative TAM of €14 billion by 2029.

Globally, it forecasts a TAM of €200 billion by 2029 across iGaming, online sports betting and its existing lottery services.

Intralot Bally’s merger to complete by end of year

Intralot announced its €2.7bn acquisition of the Bally’s International interactive business in July, noting the deal would likely close by Q4 of this year.

The aim of the combination is to create a global iGaming and lottery leader with €1.1 billion in annual revenues. The new combined group will be listed on the Athens Stock Exchange and operate B2C and B2B lottery operations in a vast number of markets globally.

The group will also benefit from an agreement in place with Bally’s International which will see it gain a share of the business’ profits, once it becomes profitable.

“We’re maintaining exposure to the US without taking on the downside risk, which is significantly valuable,” Reeves said during the presentation. The group expects to launch its own iGaming product in the US, utilising Intralot’s relationships and expertise as a B2B lottery provider in the market.

Its bullish B2C expansion plan also includes the potential for M&A, in acquiring local brands.

“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,” Reeves added.