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About Butterfly Charms
“It’s profitable, it’s growing and it was for sale from a distressed vendor,” he says. “That combination rarely appears in regulated Europe, where scaling a B2C brand means paying up for customers against Flutter and Entain on thin margins.
“Africa isn’t saturated, but I wouldn’t call it easy either. Betway and the local incumbents are well dug in. The difference is that you’re competing for a market that’s still forming, at a fraction of the acquisition cost, and the operating margin is there if you get the payments and the product right. The risk is regulatory and currency rather than competitive.”
GiG’s immediate priority following the completion of the deal will be disciplined integration, says Richards. This includes bringing 888Africa’s financial reporting, compliance and operational processes in line with GiG’s standards.
What is Butterfly Charms?
Andreas Braun, owner of four arcades in Wiesbaden, filed an objection and constitutional complaint against the tax rate in April last year according to local reporting. He argued that the tax rise had provided a ‘strangling’ effect to business and that it consumed operator profits.
According to a high court ruling from over a decade ago, the tax rise cannot be allowed to rise to the point of ‘consuming livelihoods’.
“If the tax burden alone makes it impossible to establish the occupation of slot machine operators as the economic basis of one’s livelihood within the municipality,” the ruling said.
How to play Butterfly Charms
Following the decision, the odds of one additional rate hike this year jumped to 48% on Wednesday afternoon on Polymarket. The contract asks traders to predict whether the upper bound of the Fed Funds Rate will hit 4.25% by the end of 2026. There is now a 21% chance that the Fed will stand pat for the remainder of year, with a slightly lower probability that the upper bound will reach at least 4.5%.
According to Multiples.VC, the average enterprise multiple (EV/EBITDA) of top US-listed gaming companies is currently 10x. Data from New York University last updated in January pegged the overall market average at 23.9x and 19.7x among EBITDA-positive firms, suggesting the sector is undervalued relative to other industries. In a report released Monday, Fitch Ratings said most North American gaming companies hold “Stable” outlooks with “adequate rating headroom” despite consumer headwinds.
Macquarie’s Beynon agrees with that sentiment, pointing to the relative stability of gaming companies through tough economic stretches such as the Covid-19 pandemic. Bankruptcies in the sector have been low relative to the broader market, he notes, and both land-based and digital companies have reason for optimism moving forward.
