The Future of iGaming Businesses & Cryptocurrency

The recent increase in mergers and acquisitions in the iGaming industry should surprise no one. Growing demand and rapid regulatory changes for the industry has forced some of the largest operators to unite to survive. Introduction of new taxes and hiking existing ones makes it logical for firms to look for ways to cope with rising costs and thinning profit margins.

A good example is an announcement made in August 2017 by the UK government saying that FreePlays, which offered online gaming platforms, would be taxed.

2017 saw a lot of activity in the iGaming industry, which included the introduction of cryptocurrency. Many of the casinos spread around the world started embracing Bitcoin as a means of payment.

These are some of the notable mergers and acquisitions which happened in 2017:

Playtech & Eyecon

Gambling service and solution provider Playtech acquired Eyecon. Eyecon is an Australian bingo company whose presence in Australia has been felt for a number of years now. The acquisition of this bingo company means that Playtech now becomes one of the largest Bitcoin casinos in the market today having already acquired several other casinos in the past. The acquisition was for £50 million. Playtech announced that it intends to expand its Financials and Gaming divisions over time.

Kindred Group & Danske Spil

Kindred Group aims to be an even bigger player in the iGaming industry, at least if the acquisition of Danske Spil in 2017 is anything to go by. Kindred Group planned to consolidate its might in the industry by entering into talks with the Danish state-run operator. According to news sources in Denmark, the price tag placed on the Danske-Spil was $570 million which is equivalent to DKK4 billion. Even though the Danish regulators were not in agreement over the acquisition deal, it shows Kindred Group is increasingly becoming focused on extending its business through mergers and acquisitions.

Betsson & NetPlay TV

Betsson iGaming company, registered in Sweden, announced in early 2017 that it wanted to acquire NetPlay TV which is an interactive gambling firm based in the UK. Due to the £26.4 million deal which was finalized in mid-2017, Betsson plans to become a major player in the UK iGaming market. In order to satisfy both customers and regulatory bodies, Betsson changed its dividend policy. This move was meant to help make things easier for the firm when it wants to go for future acquisitions or mergers.

Mr Green & Evoke Gaming

The name Mr Green is not new in the acquisition and merger news section. In 2017, Mr Green acquired Evoke Gaming. As part of the deal, Mr Green acquired a number of Evoke's gaming sites among them Bertil, Mama Mia, Redbet and Vinnarum casino. The acquisition helped Mr Green enjoy a stronger hold on the gaming market in the Scandinavian region.

The iGaming market revenue expected in 2017 was $117 billion. With the increased mergers and acquisitions which happened in that year, it is safe to say that iGaming firms are looking for ways to consolidate their customer base and have a stronger presence around the world. In a press release, Digi-Capital noted that the industry has the potential of topping $170 billion revenue in 2021.

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