Flutter Entertainment is set to pay $542.90 million to acquire Tombola, a bingo gaming company that has been generating robust financial results over the past years. The owner of Paddy Power, Betfair, and FanDuel revealed the acquisition on Thursday, looking to secure another high-value asset to its portfolio.
Flutter Acquires Bingo Company Tombola
Flutter is confident that the acquisition of the bingo arm will help it shore up its own portfolio while diversifying its products and expanding its position in a vertical that it has traditionally not been too involved in. The company is cognizant of the market potential and the substantial player base that participates in bingo.
Flutter will be able to tap into the vast bingo market in the United Kingdom, which is home to its operations, as well as boost its product capabilities and expertise. Flutter is further motivated by the way Tombola operates its business, offering several safety checks designed to protect consumers.
Those include mandatory staking and deposit limits which means that all consumers who use Tombola’s platform to play bingo are well-protected. Tombola managed to amass a proforma revenue of $221.30 million for its FY21, Flutter noted, and the company posted an EBITDA of $51.95 million.
Aligned with Flutter’s Responsible Gambling Goals
Flutter Entertainment chief executive Peter Jackson has welcomed the move and argued that Tombola is one of the best choices for the company to scale up its presence in online gaming:
“As the world’s leading online gambling operator, Flutter is delighted to add Tombola, the UK’s premier bingo brand to the Group. Tombola is a business we have long admired for its product expertise, highly recreational customer base, and focus on sustainable play.”Flutter Entertainment chief executive Peter Jackson
Jackson praised Tombola’s own focus on responsible gambling, which remains a top priority for his company. That and the fact Tombola has significant operational capabilities in Ireland and the United Kingdom add tremendous value to Flutter’s offer.