Jackpotjoy Casino has made quite a substantial loss earlier in the year, mainly due a rise in company debt, forcing a pre-tax loss for the company. This was brought on by a few massive acquisitions made toward the end of last year, leading Jackpotjoy towards a loss even before taxation. The acquisition in question was the brand Starspin, a major rival to Jackpotjoy, offering similar gaming services to their clients and competing in the region.
The buyout should prove to be more profitable in the long run for Jackpotjoy, and this is seen by many as a consolidation of two competing brands into one. This didn’t seem to worry investors too much though, and the share price has continued to go from strength to strength, and will see the company making profits again in the near to mid-term period. Another factor that seems to be an obstacle in the way of Jackpotjoy is that the UK government has decided to expand on their taxations, and have now decided to tax bonuses that are won at online casinos as well, which were previously exempt.
However, the growing user base has made sure that Jackpotjoy is able to build themselves up, and continue as an online gaming brand. Using traditional advertising streams such as radio and TV, as well as using celebrity endorsements, allows player acquisition to grow in the UK, with an appetite for online gambling and sports betting increasing on a year on year basis. Each division of the company is still very profitable, and the loan appears to be quite surmountable, especially in light of the growing demand globally.
As technology continues to advance and the affordability continues to rise in these services, online gambling and sports betting user acquisition will allow them to shake off this slight speed bump in the road. With all of this in mind, it seems as though this is but a temporary phase in the company, and pundits are wagering that due to the growing user base, great average spend per user, and rising profits in the company, there is likely to be a stabilization, and then a positive period of income for Jackpotjoy.
As we holistically look at the recovery strategies of the Jackpotjoy brand, it seems that they have plans to push forward as to be a financially viable venture. The very fact that it finds itself in debt is all due to its latest acquisition, which means that company management is expecting to be around for many more profitable years. This all bodes well for Jackpotjoy, if they can successfully manage the negative press and weather the storm, they will move on and continue to dominate the online casino gaming landscape as they have been for the past few years.