Evoke Buys Leading Romanian iGaming Operator Winner.ro

Article by : Erik Gibbs Aug 27, 2024

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Evoke PLC has announced its plans to acquire New Gambling Solutions SRL, the company behind Winner.ro, a well-known online betting and gaming platform in Romania. This move marks a significant step for Evoke, known for owning major brands such as William Hill, 888, and Mr Green.

The acquisition deal is structured to merge Evoke’s existing Romanian operations with Winner.ro, creating a formidable presence in the Romanian online betting market. After combining the operations of 888.ro with Winner.ro, Evoke is looking to become the fourth-largest operator in Romania, commanding a combined market share of approximately 7%.

The deal’s financial terms include a €10 million (US$11,16 million) investment from Evoke, which will give the company a 51% stake in the newly merged Romanian business. However, Evoke has also reserved the option to increase its ownership to as much as 100% from the third anniversary of the deal’s completion, depending on the performance metrics set for 2026.

Romania’s online betting market has been growing rapidly and is expected to continue expanding at a compound annual growth rate of 13% from 2023 to 2026. The market is anticipated to generate around €1.1 billion (US$1.23 billion) in net revenue for 2023, positioning it as a lucrative landscape for operators. This growth, coupled with stringent local regulations and the need for a high level of localization, has created significant barriers to entry, making Evoke’s strategic acquisition particularly timely.

Evoke expects the acquisition of New Gambling Solutions to be finalized within the third quarter of 2024. While the company anticipates that this acquisition will positively impact its earnings starting in 2025, it has noted that it does not expect this transaction to alter its previously announced guidance for 2024.

Nicklas Zajdel, CEO of Winner.ro, expressed his enthusiasm for the deal, highlighting the potential for the combined entity to achieve a market-leading position in Romania. Zajdel emphasized the strength of Winner.ro’s leadership team and its successful track record in the market, noting that the merger would leverage Winner.ro’s localized approach and competitive advantages, such as its advanced product platform, personalized user experience, and extensive network of deposit points.

Following the announcement of the acquisition, Evoke’s shares saw a 3% increase in value, reflecting investor confidence in the strategic direction the company is taking. This acquisition positions Evoke to capitalize on the growing Romanian market and further solidifies its presence in the global online betting and gaming industry.