Allwyn International has announced the sale of its land-based casino assets in Germany and Australia, while expanding its online reach by taking full control of Stoiximan.
The sale of land-based casinos in Australia and Germany is expected to generate around €105 million ($122 million) for the company.
Allwyn is focusing more on online casinos by acquiring the remaining 15.5% of Stoiximan, an online gaming operator with a presence in Greece and Cyprus.
The company has sold its 10 casinos in Lower Saxony, Germany, with gross proceeds amounting to €67.7 million. The casinos generated €126.4 million in revenue last year but faced rising operational costs.
Additionally, it has offloaded its 42% stake in Australia’s Reef Hotel Casino for roughly €54 million. The company’s stake contributed a modest €2.4 million in net income in 2024.
Allwyn Moving Towards Online Gambling
The deal to acquire the remaining 15.5% of Stoiximan is worth a reported €191.6 million. The transaction has been done through its OPAP subsidiary, which acquired an initial 36.8% stake in the company in 2018 and has gradually increased its holdings in Stoiximan.
“The transaction will increase OPAP’s ownership interest in Stoiximan to 100%,” Allwyn said. “It is in line with Allwyn’s strategy of increasing its interest in existing operations that are not wholly-owned.
“It will also increase Allwyn’s exposure to the high-growth online sports betting and iGaming segments, which are complementary to the resilient growth profile of the group’s lottery operations.”
In addition to Stoiximan, Allwyn has a controlling 51% stake in Novibet, one of the leading betting sites in Greece.
The sports betting platform has also been expanding into Latin America and operates in Brazil, Mexico, Chile, and Ecuador. The site also launched its sports betting and casino platforms in Ontario when the market was opened up to new operators in 2022.
The company may also apply for a license in Alberta as the province opens up its industry to private operators to run sports betting and online casinos in Canada.
Digital Revenue Driving Growth
Digital revenue increased 15% in Q1 this year compared to the first quarter of 2024, and represented 39% of all gross gaming revenue during the quarter.
The company indicated that Q2 earnings are meeting expectations ahead of their release at the end of the month.
“In general, demand for our products has remained resilient in prior periods of weaker economic growth, reflecting their low-price point and low-average spend per customer, as well as our large number of regular players.”
The company recently secured a €2.15 billion ($2.1 billion) senior facilities agreement with a syndicate of international banks. In addition, it has launched an offering of €500 million of senior secured notes. The funds generated will be used to pay off an older €500 million bond that was set to mature in 2027 and had a 3.875% interest rate.
