Flutter Entertainment Acquires Tombola
Flutter Entertainment, one of the UK’s leading gambling operators, has announced that it has acquired online bingo brand Tombola. The deal is valued at £402 million and will see Flutter take over one of the UK’s best known online bingo sites. The new agreement will allow Flutter to expand its portfolio and make headway in the thriving online bingo market.
Flutter is hoping to boost its presence in the online bingo market, a niche in which it has historically been absent. ©ChiniGaray/Pixabay
Diversifying its Portfolio
Flutter Entertainment is one of the world’s leading betting and gaming operators, responsible for an array of online gambling brands. It is perhaps best known in the UK as the firm behind BetFair, Paddy Power and PokerStars. Now a new online brand is about to join its portfolio, according to the latest announcement from Flutter Entertainment.
It has just acquired online bingo operator Tombola for an enterprise value of £402 million. Based in Sunderland and Gibraltar, Tombola is not only the most famous online bingo site in the UK, but in parts of Europe too. Its business has an emphasis on offering low stake bingo propositions to a highly engaged base of customers.
That strategy has worked in the company’s favor, as it has climbed to the top of its market over the last twenty years. Proving itself as an innovative force in the industry, Tombola was also the first UK operator to introduce both mandatory staking and deposit limits. This has helped it to protect its customers and build a sustainable player base.
In a press release, Flutter Entertainment outlined the terms of the acquisition and described the business that it would be taking over. Tombola has a fully regulated revenue base, 80% of which comes from the UK market. A further 16% of its revenue comes from markets in Italy and Spain.
According to Flutter, Tombola is a market leading bingo proposition with a vibrant player community that advocates for the brand. Over the last five years it has shown a Compound Annual Growth Rate of 23%. Its average monthly players are numbered at around 400,000.
The acquisition of Tombola is an exciting prospect for Flutter, as its brand offers a range of possibilities and strategic advantages. One such advantage is that Tombola will help to diversify Flutter’s product portfolio. It offers a valuable opportunity for the group to grow in a vertical which Flutter has mostly been absent from.
Shared Vision for Safer Gambling
Tombola’s engaged and sustainable player base is also a valuable asset, especially as many of its customers have been loyal to the brand for many years. The online brand will boost Flutter’s presence in its home market, while offering it more expertise and product capabilities than ever before.
Safer gambling is an important issue for Flutter. With its forward-thinking player protection strategies, it is clear that Tombola shares that ethos. That’s good news for Flutter, as regulations are to be tightened in the UK. The British government is reviewing the 2005 Gambling Act and new legislation regarding online gambling is expected to be brought in soon.
During the financial year leading up to April 2021, Tombola recorded pro forma revenue of £164 million, as well as EBITDA of £38.5 million. Flutter is due to pay £402 million in cash to acquire 100% of the business. This transaction is expected to go ahead following clearance from the UK Competition and Markets Authority.
Flutter Entertainment’s Chief Executive, Peter Jackson, was pleased to announce the group’s latest acquisition, which is likely to be completed in the first quarter of 2022. Speaking to the press, Jackson explained how Tombola’s experience in the online bingo niche will benefit his company. He said:
“As the world’s leading online gambling operator, Flutter is delighted to add Tombola, the UK’s premier bingo brand to the Group. Tombola is a business we have long admired for its product expertise, highly recreational customer base and focus on sustainable play. The brand aligns closely with Flutter’s safer gambling strategy, a key area of focus for us.”
Jackson went on to add that he is excited to combine Flutter’s digital marketing expertise with Tombola’s operational capabilities. He also took the opportunity to extend his thanks to Phil Cronin, the founder and CEO of Tombola. Cronin launched the business in 1999, and has been at the helm for the last 22 years.
Number One Bingo Site
Cronin has received a number of accolades for leading Tombola, including “Durham & Wearside Business Executive of the Year 2011”. More than two decades since it began, Tombola has grown to become one of the UK’s most popular online bingo providers. Its bingo website is Britain’s largest and caters to more players than any other bingo firm.
Tombola has also become a popular bingo provider in Europe. In 2012, the company gained licenses to operate in Spain and Italy. It is now the number one online bingo provider in both countries. Alongside its Sunderland headquarters, the firm also has offices in Gibraltar, Milan and Madrid.
With more than 700 employees to its name, Tombola is one of the biggest employers of game and web developers in the North of England. In 2016, the company launched Tombola Arcade, a sister site offering six unique games; spin, scratch, flip, bubble, pick and emoji.
An important part of Tombola’s route to success has been its relationship with British broadcaster ITV. The company has taken part in an array of sponsorship deals, which have seen its branding appear on TV screens across the nation. It has sponsored soap opera “Emmerdale”, daytime chat show “Loose Women” and Saturday night favorite “I’m a Celebrity… Get Me Out of Here!”.
The bingo firm has also taken pride in making sure that it gives back to communities. In 2012, it started sponsoring Sunderland AFC Keroche. The African football club is supported by English Sunderland AFC fans, and Tombola did its bit by purchasing fifteen boxes of football kits for the team.
Back in Sunderland, the company has launched the Tombola Academy, an initiative that offers full-time training to young graduates and apprentices. After three years of taking part in the program, some of its team members recently graduated and will take on new permanent roles at the company.
