Table of Contents
Aristocrat Leisure will complete the shutdown of its UK and European white label operations within the current financial year, CEO Trevor J. Croker confirmed in a letter to shareholders this week.
The white label business, which generated $36 million in FY25 revenue but negligible profit, was acquired as part of Aristocrat’s $1 billion purchase of NeoGames in 2023. That transaction included the white label portfolio of Aspire Global, which NeoGames had acquired in 2022 for €400 million.
“We are planning to exit the White Label business in Interactive, which largely operates in the UK and Europe, with an expected completion within this financial year,” Croker stated. “This business contributed $36m US dollars of revenues to the Interactive result in FY25, but generated negligible profit and does not meet our internal return hurdles.”
White Label Network Background
The white label operations provided front and backend services to sportsbook and casino operators, including customer support, platform support and customer retention capabilities. The business was integrated into Aristocrat’s Interactive division following the NeoGames acquisition.
Reports of the planned shutdown first surfaced in January when affiliates were notified of the impending closure. Industry observers noted that the UK’s upcoming tax increase to 40% for online gaming operators in April would place significant pressure on white label operators’ margins.
Strong Financial Performance Despite Exit
The white label withdrawal has not impacted Aristocrat’s overall financial health. The company reported FY25 revenue growth of 11% to AU$6.3 billion (£3.3bn), up from $5.6 billion the previous year. Net profit increased 12% to $1.6 billion, while EBITDA margin reached 40.1%-41.7%.
“These strong financial results were achieved while making important investments in technology and capabilities to drive our success into the future,” Croker said. “We also made appropriate organisational changes, restructuring our group functions, including the product and technology groups, to increase coordination and alignment across businesses.”
Strategic Focus on Growth Markets
Despite exiting European white label operations, Aristocrat maintains interest in select international markets. The company identified North America and Australia as core focus areas, with continued customer demand in its home market despite mounting political scrutiny of the gambling sector.
The UAE represents another strategic priority, with Aristocrat seeking licensing from the General Commercial Gaming Regulatory Authority (GCGRA) ahead of the market’s planned 2027 launch.
“We also see continued organic growth potential in gaming markets such as Asia where demographic and income trends support long-term growth; in Europe where we are under penetrated; and new market openings such as the UAE, due to launch in 2027,” Croker noted.
The CEO’s comments suggest that while Aristocrat is withdrawing from low-margin white label operations in Europe, the company continues to view the continent’s various gaming markets as offering growth potential through alternative business models.
Source: SBC News
