Flutter Entertainment, a British and Irish iGaming powerhouse, has revealed that it has invested £402 million ($540.2 million) to acquire Tombola Limited in its entirety.

The London-listed company detailed in an official press release on Thursday, Nov. 18, Tombola Limited’s evolution from a company founded 16 years ago by entrepreneur Phil Cronin to a market-leading bingo-centric firm that offers a low-stake proposition to a ‘highly-engaged customer base’ all over Europe.

Flutter Ent. looming acquisition of Tombola 

Previously known as Paddy Power Betfair until early 2020, Flutter Entertainment is the parent company of a host of online casino and sports betting brands including Betfair.com, PaddyPower.com, and PokerStars.com. 

The company recently reported a 9 percent year-on-year increase in third-quarter revenues to slightly more than £1.4 billion ($1.6 billion). 

The operator stated that Sunderland-based Tombola Limited, through its mobile-friendly domain at Tombola.co.uk, became the first major iGaming company in the United Kingdom to ‘implement both mandatory staking and deposit limits’ and has since grown to a ‘highly sustainable player base’ of over 400,000 people each month.

Stronger Financial Gain

According to Flutter Entertainment, 80% of Tombola Limited’s current revenues come from players living in the United Kingdom, with the remaining 16% coming from players in Spain and Italy.

Additionally, it stated that the online bingo company now employs roughly 700 individuals and that its yearly revenue has increased by 23 percent over the last five years.

Flutter Entertainment stated that by acquiring Tombola Limited, it will diversify its entire offering and strengthen its ‘position in a product vertical in which it has previously been under-indexed.’ The behemoth said that the transaction will also allow it to bolster its ‘online gaming footprint in its main United Kingdom market at an attractive valuation’ and add ‘an engaged and sustained player base with many customers active with the brand for numerous years’.

Flutter Entertainment’s Chief Executive Officer, Peter Jackson, described Tombola Limited in a news release as ‘the United Kingdom’s premier bingo brand,’ with revenues of £164 million ($220.5 million) for the twelve months ended in April. Additionally, the CEO noted that the online bingo enterprise earned £38.5 million ($51.7 million) in earnings before interest, taxes, depreciation, and amortization during the same period, with the acquisition expected to receive the required Competition and Markets Authority approval by the end of March.

“I am thrilled to combine our digital marketing skills with Tombola Limited’s operational capabilities in the United Kingdom and Ireland division,” Peter Jackson stated. As Phil prepares to take over the reins, I’d want to express my gratitude for establishing the firm into the success story that it is today, and I look forward to welcome the Tombola Limited team to Flutter Entertainment and growing a sustainable business together.”