CBRE analyst says scale will matter as UK gambling market consolidates

Bally’s Intralot reported a 22.8% year-on-year increase in B2C revenue in its preliminary Q3 results, which it attributed to UK growth and the addition of Intralot’s B2C business. B2C revenue rose from around $210m to more than $257m in Q3.

Colin Mansfield, head of credit research at CBRE, said that scale mattered to the long-term viability of Bally’s UK-led growth. Mansfield said consolidation made size important and that Bally’s position through Gamesys had left it better placed than smaller, less profitable competitors when taxes increased. He said Bally’s had gained market share as smaller operators withdrew because profitable operation had become harder for them.

Bally’s completed its acquisition of Gamesys Group in 2021. The £2.7bn deal involved Gamesys, then listed in the UK, whose main brands included Jackpotjoy, Virgin Games and Monopoly Casino. Following the Bally’s and Intralot merger, those brands were included in the parent company’s Bally’s Intralot B2C reporting segment.

The acquisition of evoke was agreed in June for £243.1m. The William Hill operator raised material uncertainties concerning how Bally’s Intralot would run the group as its owner. Those concerns were said to cast significant doubt on evoke’s ability to continue as a going concern. Evoke’s share price is down 87% over five years. Over the past year, however, its shares have gained more than 25% to reach £0.46. The deal remains on track, and Bally’s Corporation CEO Robeson Reeves has ruled out an immediate break-up of evoke upon completion.