Gambling.com (GAMB) recently made headlines as its stock soared nearly 18% following the announcement of its acquisition of Odds Holdings, the parent company of OddsJam. The deal, valued at up to $160 million, is expected to close on January 1, 2025. OddsJam specialises in analysing sports-betting odds to provide bettors with actionable insights, and the acquisition is expected to improve Gambling.com’s recurring revenue stream.
The company, known for its comparisons, reviews, and rankings of gambling platforms, reached three-year stock highs, with shares climbing approximately 51% since its third-quarter earnings report on November 14. The gambling affiliate raised its 2024 revenue guidance after Q3 profits grew by 79% and sales increased by 37%. Analysts predict a profit increase of 27% for 2024 and 10% for 2025.
With a strengthened IBD Relative Strength Rating of 91 and growing institutional interest, with 135 mutual funds owning shares as of September, Gambling.com’s performance signals positive momentum. However, analysts note the stock’s vulnerability to pullbacks after its significant recovery.
On December 20, 2024, live dealer specialist Evolution announced its full cooperation with the UK Gambling Commission (UKGC) in an ongoing review. The review follows allegations that Evolution’s games were accessible on an unlicensed website.
The supplier has since removed its games from the site and stated it is using “all technical tools available” to ensure its games are only offered through licensed operators. Despite these efforts, Evolution now faces the possibility of enforcement action, which could range from no penalty to financial sanctions or even licence suspension in the UK, a market that accounts for approximately 3% of its revenue.
CEO Martin Carlesund reaffirmed Evolution’s commitment to the licensed UK market and to preventing unlicensed traffic. He emphasised the importance of collaboration with regulators to resolve concerns swiftly, pledging transparency and forceful action.
The UKGC has urged operators to monitor their suppliers to prevent black market activity. While stakeholders acknowledge the importance of this directive, trade bodies in Germany and Sweden have argued that enforcement is the regulator’s responsibility.
This review comes amid broader scrutiny of Evolution’s operations. Reports have linked its services to unlicensed operators in Asia, some of which sponsor UK Premier League teams.
Asia accounts for approximately 40% of Evolution’s revenue, with regulated markets contributing 39% of its total revenue in Q3 2024. Industry analysts suggest that Evolution’s period of unchecked growth in Asia may be nearing an end, noting the challenges of operating in unregulated markets.
The imminent launch of Brazil’s regulated betting market has sparked a surge in mergers and acquisitions (M&A), mirroring trends seen during the expansion of the U.S. betting market six years ago. Flutter Entertainment, a key player in global betting, recently acquired a 56% stake in local operator Betnacional’s parent company NSX Group for $350 million, securing a foothold in the promising Brazilian market. Analysts predict Flutter’s market share in Brazil could grow by 150% by 2030, potentially leading the market.
High regulatory costs and requirements for local representation are driving M&A activity. Operators are opting to acquire established local businesses to effectively manage Brazil’s challenging regulatory environment. MGM Resorts International has also entered Brazil through a joint venture with Grupo Globo, utilising the media giant’s vast reach to boost brand trust, an essential factor for Brazilian consumers.
As the Brazilian betting sector prepares for formal land-based gambling approvals in 2025, Hard Rock International and other operators are considering joint ventures or partnerships as entry strategies.
While Flutter and Betano are expected to dominate the market, niche operators focusing on specific demographics or product offerings may carve out competitive positions.
Kindred’s Unibet has been fined €400,000 by the Netherlands’ Kansspelautoriteit (KSA) for allowing self-excluded players registered with the Cruks system (Centraal Register Uitsluiting Kansspelen) to gamble online. The breach occurred between November 22, 2022, and January 30, 2023.
The issue arose when Unibet deviated from its standard registration process during the FIFA World Cup, allowing players to register without verifying their citizen service number (BSN) after encountering error messages from Cruks. This workaround enabled Cruks-registered individuals to create accounts and gamble. Upon discovery, Kindred ceased the alternate process but admitted more players were affected than initially reported.