The convergence of multiple trends in the online gaming industry (the acceleration of games as social networks and content platforms, and a push toward cross-media integration, cloud gaming and subscription services) is underpinning buoyant times for investment and M&A activity in the sector. Indeed, the last few years have seen a huge acceleration of growth and increased deal activity, both from existing video games industry players and new investors.
The sector’s growth has already brought scrutiny in terms of player protection, especially around the risks of financial harm. Controversies over monetisation methods continue to cause negative sentiment leading to calls for increased regulation. Jan Feuerhake, Salary Partner, Hamburg, Taylor Wessing (right) and Nathan Krapivensky, Senior Counsel, Tel Aviv, Taylor Wessing. Photo: Taylor Wessing Israel has long been one of the world’s leading exporters of online gambling and casino companies. Yet the recent news that Israeli-managed and London-listed 888 Holdings has agreed to buy William Hill’s European business from its U.S. owner in a deal worth £2.2 billion is further proof that opportunities abound for Israeli casino and gambling companies looking to expand internationally.
Online gambling is continuing to boom worldwide. Specifically, during the Covid-19 pandemic consumer demand is growing and leading operators to new revenue highs. While some offers such as sports betting (due to a lack of events) and poker (due to a general trend) have experienced less growth, online casino slot games, bingo and casino games are gaining traction in markets that had relatively big terrestrial offerings.
In the U.S. market, the pace of mergers and acquisitions in the sports betting and online gaming world has considerably increased in the last few months, with Penn National Gaming buying Score Media and Gaming in a $2 billion deal and DraftKings purchasing Golden Nugget Online Casino for $1.5 billion in stock.
The global online gambling market is expected to grow from $64.13 billion in 2020 to $72.02 billion in 2021 at a compound annual growth rate (CAGR) of 12.3%. The growth is mainly due to recovery from the Covid-19 impact, which had earlier led to challenges stemming from lockdowns and social distancing measures […]
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