Special report: eGR NA Power 25 (part 2)
Who will top the inaugural eGR North America Power 25 rankings with Caesars Interactive, IGT and Big Fish Games all in the running?
The Power 25 is eGR NAâs rankings of the most powerful and influential companies in the RMG, social casino and daily fantasy sports sectors. To compile the list, we have collaborated with independent research company Eilers Research, data partner dystillr, and an independent panel of experts to assess the relative strengths and weaknesses of the industryâs power players. Each company is ranked based on revenues, scale, influence and product offering, and on financial data and input from our judging panel.
And while industry behemoths from the social sector locked out the top three, daily fantasy sports and RMG operators, have all made the top ten and reflect the ever more blurred lines between the three industries. In a three-part serialization of the rankings, today we countdown from number 15 to 5.
15: bwin.party
Revenues: N/A
Key products: partypoker.com, partycasino.com
Bwin.party has invested heavily in the US market, convinced of its long-term potential. In New Jersey, it powers the BorgataPoker.com and BorgataCasino.com sites alongside its own partypoker.com and partycasino.com brands, and also has a deal with MGM Resorts to launch poker in Nevada. As a combined force, Borgata and bwin.party have led the charge in New Jersey from launch, certainly from a GGR perspective. But itâs not all been plain sailing, with user experience complaints and a lack of profitability overshadowing its early successes. But the judges said bwin.party would undoubtedly be a power player as more states regulate, and praised its commitment to growing the stateâs poker market.
14: Tropicana
Revenues: $16m in H1 2015 (inc revenues from VirginCasino)
Key products: TropicanaCasino.com, VirginCasino.com, TropWorld Casino
Tropicana made a statement of intent with the launch of its TropWorld social casino in July. The operator said TropWorld would help take the Tropicana brand global, and build awareness in US states mulling egaming regulation. With its hotly-anticipated RMG poker platform on hold until liquidity issues are resolved, development has been focused solely on driving growth on TropicanaCasino.com, which saw GGR increase 63% YoY in H1 to $16m, ranking it second overall in New Jersey. Judges also praised platform partner Gamesys for its innovative 90 Ball Bingo game, the first of its kind to go live in the Garden State.
13: Playstudios
Revenues: $51.1 (est) in H1 2015
Key products: myVEGAS
Playstudios has had another a strong year with Q2 revenues up 65% to $27m according to Eilers Research, with mobile accounting for 70% of the total. Its unique approach of offering real-life rewards at casinos owned by its partner MGM Resorts, which is believed to own approximately 20% of the company, has clearly proven a success with its myVEGAS App recording 3.3 million MAUs on Facebook according to dystillr, a 30% YoY increase. And with recent industry consolidation leaving Playstudios among just a handful of independent developers ripe for acquisition, expect the California-based firm to be at the top of a number of operatorsâ shopping lists.
12: Aristocrat/Product Madness
Revenues: $59.8m (est) in H1 2015
Key products: Heart of Vegas, Hollywood Spins
Aristocrat-owned Product Madness is one of the fastest growing social casino developers in the world, with Q2 2015 revenues up a staggering 170% YoY to $33.6m. And according to Dystillr, Facebook MUAs hit 3.6 million in July, up 15% on the same month last year. Growth has largely come via its flagship Heart of Vegas app, which launched on iOS mobile in September and more recently on Android, combined with a solid performance on Facebook. Judges praised Product Madnessâ ability to leverage land-based content from Aristocrat, with further growth expected as the developer continues to add more titles in the coming months.
11: GSN Games
Revenues: $102.7 (est) in H1 2015
Key products: GSN Casino, GSN Grand Casino, Bingo Bash, Fresh Deck Poker
In March GSN Games bought Idle Gaming for an undisclosed fee, adding the developerâs Fresh Deck Poker app to its growing roster of brands. GSN said the deal would help take its mobile offering to the next level, with the channel accounting for 71% or $35.2m of total Q2 revenues according to Eilers. But while the judges were impressed with GSNâs mobile first approach, they noted that challenges still remain, particularly with Bingo Bash and the general slowdown in bingo play. But with its continued focus on mobile development and the firmâs global launch of GSN Grand Casino back in July, GSN is well placed for growth in the second half of the year.
10: Amaya Gaming
Revenues: N/A
Key products: PokerStars.com, Full Tilt.com, StarsDraft.com Â
Amaya Gaming transformed into a B2C behemoth following its $4.9bn acquisition of PokerStars and Full Tilt last year. The impact of the deal has yet to be truly felt in the regulated US market, but thatâs about to change with both brands on the cusp of licensure in New Jersey. Unleashing PokerStars in the Garden State will disrupt the status quo, and with its recently launched casino offering will be the first real threat to Borgataâs dominance. But market potential isnât the only reason Amaya makes the top ten. It already has a substantial business in Canada, and that, combined with its imminent StarsDraft launch, could see Amaya easily challenge the top five next year.
9: 888
Revenues: N/A
Key products: 888casino.com, 888poker.com, All American Poker Network
888 is one of the most influential players in the US market right now. The operator powers the WSOP.com and CaesarsCasino.com alongside its own brands in New Jersey and Nevada, and also has a 50% stake in the All American Poker Network. Not only is 888 the only operator live in all three regulated states, but its technology platform is used to power the ground-breaking liquidity sharing compact between Nevada and Delaware. And while liquidity sharing hasnât significantly impacted revenues in either market, judges praised 888 for its innovative technology and geographical footprint, which undoubtedly makes it the platform partner of choice for operators in yet to regulate states such as Pennsylvania where it already has a deal in place with the Mount Airy Casino. 888 also has a small social gaming subsidiary, MyTopia, with games such as Bingo Island 2 and Pacific Poker.
8: Scientific Games/Dragonplay
Revenues: $98.5m in H1 2015
Key products: Jackpot Party Casino, Gold Fish Casino, Dragonplay
Scientific Games has bolstered its social casino business following its $5.1bn acquisition of Dragonplay parent company Bally Technologies, which has been combined with its Williams Interactive subsidiary under the SciGames Interactive label. While Jackpot Party Casino remains its flagship app, SciGames has recently broadened its product offering with the launch of two new titles â Quick Hit Slots on Android and Hot Shots on Facebook. Both apps have performed well so far, with Quick Hit generating more than $1.5m in Q2 despite no real marketing. Total Q2 revenues were up 54% YoY to $43.7m according to Eilers, with mobile accounting for $24.4m of the total. Judges praised its impressive growth, which looks set to continue in the second half of the year as the gaming giant continues to leverage content from its WMS, Bally and Shuffle Master businesses.
7: Boyd Gaming/ Borgata
Revenues: $31.6m for FY 2014
Key products: BorgataCasino.com, BorgataPoker.com
The Borgata has been the undisputed market leader in New Jersey since the state first opened its digital doors in November 2013. Parent company Boyd Gaming has successfully leveraged its trusted Borgata brand to create a sustainable, and importantly profitable, online business in the Garden State. GGR for H1 was $23.2m, with the operator on track to generate $3m-$5m in profit for the full year. But while Borgataâs dominant market position saw it scoop the gong for Operator of the Year at the inaugural eGR North America Awards in San Francisco, it will not be able to take its foot off the gas with the imminent arrival of PokerStars. It will also be interesting to see whether Boyd Gaming and Borgata will be able to replicate their New Jersey success in other states as and when they open up.
=5: DraftKings
Revenues: $30m (est) in FY 2014
Key products: DraftKings.com
This time last year DraftKings would have ranked firmly behind fierce market rival FanDuel, but the last 12 months has seen the Boston-based daily fantasy sports operator draw level. While FanDuel still edges slightly ahead in terms of revenues, DraftKings has grown its player-base substantially via an aggressive marketing strategy and increased product offering. Unlike FanDuel, it has dared to venture into sports such as golf, the UFC and WWE wrestling. But what really sets DraftKings apart is its decision to expand into international markets, with plans to open a London office led by former bwin.party head of poker Jeffrey Haas. Itâs a risky strategy â questions remain over whether DFS can replicate its US success elsewhere â but if it pays off has the potential to see DraftKings pull clear of the competition.
=5: FanDuel
Revenues: $57.3m in FY 2014
Key products: FanDuel.com
DraftKings may have gained ground on FanDuel in recent months, but the New York and Edinburgh-based firm is still a titan of the industry and is on track to pay out more than $2bn to players this year. Having completed a $275m funding round in July (DraftKings raised $300m) FanDuel has embarked on a shopping spree, acquiring mobile app developer Kotikan and sports analytics firm numberFire. FanDuel CEO Nigel Eccles said the deals represent a move away from being a pure daily fantasy sports operator towards âmulti-platform sports entertainment company.â Quite what he means by that remains to be seen, but with an IPO believed to be in the offing next year it looks set to be a transformational period for the operator, and one which could see it challenge the top three in next yearâs Power 25 rankings.
For part one of the rankings click here.
The third and final instalment of the eGR NA Power 25 will be published tomorrow, September 25.