Nowadays, small and big gambling companies appear almost every week or so. The fans of online betting and virtual gaming platforms, in general, may find this tendency a positive one, as they get more options to choose from and more exciting resources to place their bets. Besides, the process of establishing a new gaming brand is hassle-free and straightforward today, letting almost anyone interested to create a new gambling website.
Yet, it seems that the gambling industry bets on mergers and acquisitions, with giants of virtual gaming buying each other out regularly, not to mention them “absorbing” the smaller enterprises that experienced a skyrocketing success in the early stages of their existence.
Indeed, the current situation at the gambling market raises a lot of questions concerning the future of the industry. Gamblers and entrepreneurs wonder if the world of online casinos just plays by the rules of any other large business, where bigger and older enterprises have a lot of influence, which lets them “borrow” profitable ideas generated by new smaller ventures. Or maybe newbies in the web-based gaming industry turn out to be more moneymaking than the legendary oldtimers, prompting them to want to get their share of that money?
It is important to remember that mergers of large gambling companies have been happening ever since it was legally allowed to open betting shops and lottery offices. But it is hard to deny the prevalent tendency, which has appeared much more recently, of organizing significant mergers of gambling companies. The latter must mostly be caused by the rapid and prosperous development of the online betting sector.
Gambling Industry Bets on Mergers and Acquisitions: The 2019 Situation
In the face of increasing competition and massive regulatory pressure in many jurisdictions, several large gambling enterprises have decided to take merger and acquisition steps since the beginning of 2019. Consolidation often proves a successful way to stifle competition and compensate for the adverse effects of the regulations that may be aimed at improving service quality but sometimes have the opposite effect.
Over the past eleven months, some of the major competitors in the virtual gaming industry have sought and found partners to reduce the negative impact of changes in the global betting market.
Most mergers and acquisitions in 2019 were planned in Europe. Still, a few major events have also occurred in the United States, where, despite the decision of the Justice Department to revise the interpretation of the Federal Wire Act, discussions in the gambling industry continue.
For instance, one of the most notable mergers and acquisitions offers of the current year was the desire of William Hill – a famous UK-based bookmaker – to purchase the Swedish virtual gambling group Mr Green and the U.S. betting operator American betting operator. Another well-known betting giant of the Great Britain, 888, confirms that the gambling industry bets on mergers and acquisitions by buying the BetBright sports betting platform and several digital bingo brands – Costa Bingo, City Bingo, and Sing Bingo.
Gambling Industry Bets on Mergers and Acquisitions: What It Means For the Gamblers
In fact, the vigorous growth of the industry of online casinos is good news for avid gamers, which are now offered an abundance of gambling portals for every taste. Even if a player has particular, strict requirements for such a resource, there is a good chance he/she will find a relevant virtual betting website.
Additionally, the current tendency on mergers and acquisitions has also resulted in the gaming companies providing plenty of good deals to replenish their client base. Thus, the gamblers can play web-based bookmakers and online casinos off against one another.