Evoke (LSE: EVOK), a leading global betting and gaming company, has taken a significant step in bolstering its presence in the Romanian market with the acquisition of New Gambling Solutions S.R.L. (“NGS”), the operator behind Winner.ro, one of Romania’s top online betting platforms. The €10 million transaction, structured on a debt-free, cash-free basis, grants Evoke a 51% stake in the enlarged Romanian business, combining Winner.ro with Evoke’s existing 888.ro operations. This strategic move positions Evoke as the fourth-largest betting operator in Romania, commanding a combined market share of approximately 7%.

Strategic Expansion in a High-Growth Market

Romania has become a focal point for global gaming companies, with the market valued at around €1.1 billion in 2023 and projected to grow at a 13% compound annual growth rate (CAGR) until 2026. The country’s stringent local regulations and increasing demand for localized gaming experiences create a fertile ground for expansion. Winner.ro, which was launched in 2019, has quickly risen through the ranks by offering innovative products, highly personalized customer experiences, and an extensive network of 20,000 retail deposit points, generating gross gaming revenue of approximately €19 million in the first half of 2024.

A Dual-Brand Strategy for Market Leadership

Evoke’s acquisition strategy is aligned with its broader goal of creating sustainable, profitable growth in regulated markets. The newly combined entity, which includes both 888.ro and Winner.ro, will employ a dual-brand strategy. This approach leverages Winner.ro’s status as a local hero brand while integrating the globally recognized 888 brand into the Romanian market. The merger is expected to enhance customer engagement and improve marketing return on investment (ROI), setting the stage for Evoke to become a market leader in Romania​.

Leadership and Operational Synergies

Nicklas Zajdel, the current CEO of Winner.ro, who joined the company in 2023, will lead the combined Romanian operations. He brings with him a wealth of experience in managing localized strategies and product innovation, which will be crucial as the company integrates its operations with Evoke’s existing Romanian workforce of 500 employees. The combined business will operate on the Newton platform, a third-party technology known for its localization capabilities, which will be instrumental in delivering a seamless and personalized gaming experience to Romanian customers​.

Financial and Strategic Implications

The acquisition is expected to be earnings-enhancing by 2025, driven by the robust growth prospects of the Romanian market and the operational efficiencies resulting from the merger. The deal, which is set to close in Q3 2024 pending regulatory approval, will not impact Evoke’s financial leverage this year. The company has maintained its guidance for FY24, anticipating revenue growth of 5-9% in the second half of the year and an improvement in its Adjusted EBITDA margin to approximately 21%​(

This acquisition underscores Evoke’s commitment to expanding its presence in regulated markets and creating long-term value through strategic investments. By integrating local insights with global expertise, Evoke is well-positioned to capitalize on the rapidly growing Romanian market and achieve its strategic objectives.

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