Aristocrat Leisure is nearing the full closure of its EU and UK white label operations, a process that was the subject of industry speculation earlier this year.

Addressing the company’s ASX investors, Chief Executive Officer and Managing Director, Trevor J. Croker revealed that the firm is scaling back its white label activities in the UK while keeping its eye on international opportunities.

Aristocrat’s white label business was acquired when it purchased NeoGames for $1bn in 2023. The deal saw Aristocrat take control of the white-label portfolio of Aspire Global, ​​the B2C/B2B gambling group acquired by NeoGames in 2022 for €400m.

The transaction formed the platform for Aristocrat to expand its Interactive division, housing its B2C white label network under the Aristocrat Interactive division. This subsidiary was subsequently integrated into the Aspire Interactive division, including its extensive white label network.

Three years on from the NeoGames acquisition, Aristocrat now has its sights set on other pastures, however. Earlier this year, reports surfaced that affiliates had been notified that Aristocrat’s UK white label operations were due to shut down.

The iGaming white label business encompassed front and backend services to sportsbook and casino operators, Services included customer support and platform support, and customer retention.

As a new tax regime dawns for UK online gambling licence holders, with rates rising to the 40% threshold. Industry observers have highlighted the significant strain this will place on white-label operators attempting to maintain margins under a new regime.

SBC News contacted Aristocrat in January regarding the reports that the Aristocrat Interactive white label network was being rolled back in the UK, but did not receive any confirmation. This confirmation has now been made by Croker.

“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,” the CEO said in his letter to stakeholders.

“This business contributed 36 million US dollars of revenues to the Interactive result in FY25, but generated negligible profit and does not meet our internal return hurdles.”

Although unconfirmed, it is possible that Aristocrat’s decision to rollback its white label deals in Europe, and particularly in the UK, is the result of hefty tax raises across various markets. The UK is due to raise online gaming tax to 40% in April, for example.

Pastures new

Cutting its ties to the UK does not seem to be fazing Aristocrat much, however, with the firm’s FY25 financials showing revenue growth of 11% to AU$6.3bn (£3.3bn), up from $5.6bn the year prior.

This was accompanied by an EBITDA margin of 40.1%-41.7%, attributed by Croker to ‘favourable mix and improved operating leverage’. Net profit rose 12% to $1.6bn (2024: $1.42bn).

“These strong financial results were achieved while making important investments in technology and capabilities to drive our success into the future,” Croker remarked.

“We also made appropriate organisational changes, restructuring our group functions, including the product and technology groups, to increase coordination and alignment across businesses.”

Market-by-market, the firm sees long-term opportunities in North America and continuing customer demand in Australia, even amidst mounting political pressure on the gambling sector, the latter, its home market.

As with many other B2B gaming firms, the UAE is also on Aristocrat’s agenda. The General Commercial Gaming Regulatory Authority (GCGRA) has been busy issuing B2B licences lately, and Aristocrat wants to join the club.

Meanwhile, despite the planned withdrawal of the company’s European white label operations, Aristocrat’s leadership continues to see potential across the continent’s various markets.

“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 underpenetrated; and new market openings such as the UAE, due to launch in 2027.”