Industry News
Playtika Acquires 80% Stake in Reworks
Playtika Holding Corp. has acquired 80% stake in Reworks Oy, maker of hit Design Entertainment app Redecor, for $400 million in cash.
In 18 months since its launch, Redecor has grown to become the #2 Design Entertainment app based on in-app purchase revenue. Playtika, a leader in mobile gaming, live-ops and technology, will leverage its expertise to further grow Redecor into a leading destination for Design enthusiasts for years to come.
In-app purchase revenue in the Design Entertainment category has grown at a 33% compounded annual growth rate since 2019, based on App Annie. Home DĂ©cor comprises 12% of all U.S. e-commerce sales, is one of the most popular categories on Pinterest, and returns more than 100 million Home DĂ©cor-related Instagram posts. Home DĂ©cor appeals to a similar demographic to that of Playtikaâs existing 36 million monthly active users.
âAs the fragmented and historically offline market of Home DĂ©cor continues to expand onto digital channels, Reworks offers us a compelling opportunity to establish a leading presence in a category that clearly commands a lot of interest and will potentially serve as a foundation to enter further areas beyond traditional gaming. Redecor provides amazing entertainment to design enthusiasts and we intend to utilize our expertise in mobile gaming, live-ops and technology to take it to new heights. Reworksâ talented team will enable us to build new apps in-house to drive future organic growth across the broader digital entertainment and app ecosystems. We are excited to welcome Reworks to the Playtika family,â Robert Antokol, Co-Founder, CEO and Chairman of Playtika, said.
âIn Redecor, we set out to build a leading entertainment product for the design community and are thrilled to be able to accelerate its growth with a partner like Playtika. Our strong creative capabilities complement Playtikaâs expertise in technology and data, a match we think will be very beneficial to our future growth,â Ilkka Teppo, Co-Founder and CEO of Reworks, said.
Reworks, based in Helsinki, will further bolster Playtikaâs existing presence in the city, a leading mobile app and game hub. âAdding such a creative team with a history of making successful mobile apps and entertainment products will help us continue to attract the strongest talent in the Nordic region who want to work on amazing mobile experiences,â Antokol said.
Playtika will purchase the remaining 20% of Reworks for up to $200 million, based on 2022 Company EBITDA (as defined in the definitive acquisition agreement). In the event the agreed-upon 2022 Company EBITDA target is not exceeded, the outstanding 20% will transfer to Playtika for $1.
The acquisition is expected to contribute approximately $30 million in revenue to Playtikaâs 2021 revenue. This transaction marks Playtikaâs 8th acquisition of a mobile game or IP since its founding in 2010. Following this transaction, Playtika remains well-positioned to continue pursuing its M&A strategy, with approximately $1.4 billion in available liquidity for future deals.
Industry News
Dutch Mental Health Care Calls for Total Ban on Online Gambling Advertising
The Dutch mental health service is calling for a total ban on online gambling advertisements in the Netherlands.
Although a ban on untargeted gambling advertisements and a ban on the use of role models has been in effect since 2023, a recent research by KRO-NCRVâs Pointer shows that (illegal) gambling companies and sports tipster platforms are still enticing young people via social media such as TikTok and Snapchat.
By using influencers and terms like âfree moneyâ, they try to attract a young audience and thus lower the threshold to start gambling. This concerns both legal online casinos and online casinos that do not have a license in the Netherlands. The Gaming Authority has started an investigation based on Pointerâs findings.
Pointerâs research shows that part of the gambling industry deliberately targets young people who are often susceptible to promises such as âfast moneyâ and the influence of role models. Ruth Peetoom, chair of the Dutch mental health service, compares this approach to that of the tobacco industry, where similar marketing strategies were used to get young people to smoke.
Despite the existing advertising ban, gambling companies continue to explore the boundaries of the law, according to Peetoom. The Dutch mental health and addiction care associations in the Netherlands therefore push for a total ban on online gambling advertising and stricter rules for the duty of care of gambling providers.
With the call for a total ban, the Dutch mental health care sector hopes to prevent further normalisation of gambling behaviour among young people and to protect them from the temptation and consequences of online gambling.
Compliance Updates
UKGC: Market impact data on gambling behaviour – operator data to Oct 2024
The Gambling Commission has published further data on the gambling industry in Great Britain.
This data, sourced from operators, reflects the period between March 2020 and September 2024, inclusive, and covers online and in-person gambling covering Licensed Betting Operators (LBOs) found on Britainâs high streets.
Comparison should not be made with the industry statistics dataset, as this dataset may include free bets and bonuses and does not include data from all operators.
This release compares Quarter 2 (Q2) of financial year 2024 to 2025, with Q2 of 2023 to 2024, looking at how the market has changed in comparative periods over a year.
The latest operator data shows:
- online total Gross Gambling Yield (GGY) in Q2 (July to September) was ÂŁ1.32 billion, an increase of 11 percent from Q2 the previous year. The overall number of total bets and/or spins increased 12 percent Year-on-Year (YoY), reaching a new peak for the third consecutive quarter of 25.2 billion, whilst the average monthly active accounts2 in the quarter increased 8 percent
- real event betting GGY increased by 6 percent YoY to ÂŁ453 million. The number of bets decreased 10 percent, while the average monthly active accounts in Q2 increased 9 percent
- slots GGY increased 16 percent to ÂŁ680 million YoY. The number of spins increased 13 percent to 23.3 billion while the average monthly active accounts in Q2 increased 16 percent to 4.4 million per month. Although this is a new peak for GGY in this dataset for the slots vertical, it should be noted that one operator has re-classified some of its products into the slot vertical this quarter, which has had an impact on the vertical data
- the number of online slots sessions lasting longer than an hour increased by 9 percent YoY to 10 million. The average session length remained at 17 minutes. Approximately 6.1 percent of all sessions lasted more than one hour compared to 6.6 percent in Q2 the previous year. The number of spins per session has fallen from 147 to 142 YOY, whilst the GGY per session has fallen from ÂŁ4.20 to ÂŁ4.13 in the equivalent timeframe
- LBO GGY decreased by 1 percent to ÂŁ533 million in Q2 2024 to 2025, compared to the same quarter last year, while the number of total bets and spins decreased by 0.1 percent to 3.1 billion.
Industry News
Petra Maria Poola Joins Xace as Group Commercial Director
Xace has announced that Petra Maria Poola has joined the company as Group Commercial Director.
Petra brings a wealth of experience from the iGaming industry having formerly held roles at several iGaming companies such as Yolo, Relax Gaming and SiGMA. She will lead the commercial growth of Xace and its group companies, including crypto and iGaming focused xda.io, helping to drive strategic initiatives across banking, fintech and iGaming solutions.
In her new role, she will mainly oversee the growth of the groupâs sales, marketing and account management functions, ensuring a cohesive strategy that supports Xaceâs ambitious expansion plans.
âI am incredibly excited to start this new chapter with Xace, and work alongside such a talented team and management. Transitioning into the fintech space, while still connected to iGaming, presents an exciting opportunity for growth and learning. Iâm looking forward to applying my expertise to help Xace and its group companies achieve new heights commercially, while gaining deeper insights into the fast-evolving world of fintech,â said Petra Maria Poola.
Reuben Abel, CEO of Xace, said: âPetraâs extensive background in the iGaming sector, combined with her commercial acumen, makes her a valuable addition to the Xace team. She will play a crucial role in expanding Xaceâs market presence and enhancing its suite of services tailored to the specific needs of the iGaming and fintech industries.â
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