Gaming Realms posts North American growth, watches UK stakes

Gaming Realms is strategically monitoring the potential ramifications of proposed online slots stake limits in the UK market.

In a landscape marked by a modest 1% growth for the 2024 financial year, Gaming Realms CEO Mark Segal noted during an interview with iGB that the UK gaming market has experienced unique challenges. Following the release of its full-year financial results on March 31, Segal remarked, “It has been a peculiar year for the UK” as two major operators have either ceased operations or undergone significant business changes.

“Despite this, we have maintained our market share,” Segal explained, highlighting an adaptive strategy that has allowed the company to withstand external fluctuations while still capturing growth opportunities from other large UK operators.

As the UK Gaming Commission prepares to implement new stake limits—specifically, a £5 limit for players over 24 and a £2 limit for younger players on online slots starting April 9 and May 21 respectively—Segal expressed optimism regarding Gaming Realms’ portfolio. “Interestingly, most of our games fall under the forthcoming stake limits, with an estimated 95% to 96% of our offerings remaining largely unaffected,” he added. Nonetheless, the potential impact on player behavior is a pivotal concern, as decreased player activity could significantly influence future revenue streams.

Gaming Realms: Full-Year Results 2024

Renowned for its globally licensed Slingo games, Gaming Realms reported robust financial performance for the 2024 fiscal year, concluding on December 31. The company achieved a revenue milestone of £28.5 million ($36.8 million / €34 million), marking a 22% year-over-year increase. Group EBITDA rose by 25% to £12.3 million, underscoring a thriving business model.

The surge in revenue can be attributed primarily to licensing activities, which saw a 23% rise to £24.5 million in 2024, representing a staggering 86% of total revenue. The social publishing segment also contributed positively, reaching £4 million, with a 14% increase compared to previous results. Moreover, Gaming Realms reported a pre-tax profit of £8.3 million, up 61% year on year, illustrating the company’s efficient operational management.

Gaming Realms in North America: Expanding Horizons

The North American market has emerged as a significant revenue driver for Gaming Realms, constituting 54% of the group’s total content licensing revenue in 2024. This region has exhibited remarkable growth, with the combined US and Canada licensing revenues reaching £12.9 million, up 59% year on year. Canadian markets have particularly thrived, witnessing a staggering 71% growth in 2024 due to successful licensing endeavors and strategic market entry.

“The Ontario market is experiencing rapid growth,” Segal stated, also highlighting that the company obtained a license for British Columbia during 2024. Plans for expansion into Alberta are underway, positioning the company favorably in these commercially regulated environments.

Gaming Realms: US Market and Future Opportunities

Gaming Realms reported a commendable 57% year-on-year growth in the US market, driven by its strategic partnerships with key operators such as MGM. The company has successfully launched a suite of popular games, including sports franchise titles in collaboration with BetMGM, specifically designed for audiences in Michigan and Pennsylvania. “Our latest offerings have been well-received, reinforcing our position in the market,” Segal remarked.

Recent launches targeting the New York market have introduced two exciting games connected to the Rangers and the Knicks, which promise to gain traction as teams advance through competitive playoff seasons.

Looking ahead, Segal affirmed that the company is amplifying its collaboration with existing operators, identifying further growth opportunities as regulatory landscapes evolve. With plans to enter new markets, including Delaware this year, and a watchful eye on burgeoning markets like Florida and Illinois, Gaming Realms is poised for significant expansion in the rapidly evolving US landscape.

“With increasing regulatory frameworks, we anticipate a substantial leap in growth opportunities across the US,” Segal concluded, embodying a forward-thinking approach in a dynamic industry.