Bojoko.com, a UK-focused affiliate site, has created a new database designed to track all iGaming acquisitions and mergers across the world.
The database reveals that over £100 billion has been spent on buying and selling iGaming companies and that 2023 set a new record for individual sales, with 77.
In order to understand how these decisions have impacted the industry, we will examine the key events since the first acquisition in 2001. By exploring the industry’s growth, characterised by more than 300 sales in the 2020s, we shed light on the significant changes that have shaped the iGaming sector.
iGaming Acquisitions Over the Years
The iGaming industry has gone through hundreds of mergers and acquisitions since the first sale was agreed on in 2001 when SportingBet acquired Sportsbook.com for £30 million. The initial transactions were small in scale, but as the industry’s potential became more apparent, the size and frequency of these transactions increased dramatically.
By the mid-2010s, the industry experienced a significant increase in activity, with 2014 standing out as a pivotal year. Scientific Games’ acquisition of Bally Technologies, valued at £3.9 billion, set a new benchmark for the industry, demonstrating the increasing willingness of major iGaming companies to consolidate. During this time, there was also a trend where acquisition values started to skyrocket, indicating how strategically important these actions were becoming to maintain market dominance and diversify offerings.
This upward trend persisted in the following years, with 2022 seeing the $5.8 billion acquisition of Scientific Games by Brookfield Business Partners. This deal demonstrated the value investors outside the traditional gambling industry place on iGaming companies and the industry’s strong financial standing.
The Pandemic’s Impact: Post-Lockdown Growth
The COVID-19 pandemic brought unprecedented challenges across various sectors, and the iGaming industry was no exception. The sector had to quickly adapt to a new reality because of global lockdowns and a sudden shift in consumer behaviour. This adjustment period was crucial for the iGaming industry, which had to navigate the uncertainties brought about by the pandemic.
Despite these challenges, the industry began to show signs of recovery and resilience in 2021. The iGaming sector saw a record-breaking 53 sales in 2021, nearly doubling the previous 28 from 2018, despite the economic difficulties brought on by the pandemic. This surge in activity was not just a rebound from the pandemic’s economic impact but also a reflection of the industry’s underlying strength and ability to adapt and grow under challenging circumstances.
One of the most notable transactions during this recovery phase was the acquisition of Playtech by Aristocrat for £2.7 billion. This deal not only underscored the financial robustness of the iGaming sector but also its readiness for future growth and expansion.
The New Era in iGaming
The unprecedented effects of the global pandemic, combined with years of rapid growth, have shaped the iGaming industry, which now stands at a critical crossroads as 2024 approaches.
The industry is clearly maturing, as the previously frenetic pace of acquisitions has given way to a more calculated approach. This evolution is more than a reaction to the past; it is a forward-thinking approach to a future dominated by digital innovation and strategic foresight.
iGaming companies are no longer just looking for the next big deal; they are carefully evaluating opportunities that align with their long-term vision and the changing preferences of their audience.
The strategic shift in the iGaming landscape also reflects the broader changes in the digital world. Blockchain-based gaming platforms and virtual reality casinos are just two of the new frontiers that iGaming companies are exploring as technology advances rapidly. These innovations are not just about staying ahead of the competition; they’re about redefining what the iGaming experience can be for players around the globe.
In this context, Bojoko’s continually updated overview of iGaming acquisitions proves invaluable. It offers insights into how these strategic shifts and technological advancements play out in real time. As the industry continues to evolve, this research will be crucial in shedding light on the impact of upcoming acquisitions.
The Regulatory Landscape
With these technological advancements come new regulatory challenges. Regulators have the responsibility of maintaining and enforcing rules that guarantee player safety without impeding innovation, even as iGaming platforms investigate the potential of blockchain, VR, and AI. The future of iGaming will be significantly influenced by the relationship between technological advancement and regulatory compliance.
Summary
The iGaming industry’s journey from its beginnings to the powerhouse it is today shows how resilient and adaptable the scene is. In the early 2000s, the average number of annual sales hovered around 5, a figure that dramatically surged to as high as 77 sales in 2023 alone. This exponential growth underscores the sector’s dynamic nature and readiness to embrace the future.
As we look ahead, the industry is poised on the brink of a technological revolution that promises to transform the gaming experience further. The potential for mergers and acquisitions with sectors like AI hints at exciting yet unimaginable, advancements on the horizon.
The key to the industry’s continued success and growth will be its ability to embrace these innovations while navigating the complexities brought about by regulatory bodies. By aiming to provide more customised, safe, and interesting gaming experiences, iGaming platforms not only meet the changing needs of the online customer but also create new standards for the entertainment sector as a whole.