The eMerging picture of eGaming’s future

August 26, 2015

It seems the eGaming industry in Britain is suddenly in “dog eat dog” mode. One would have to be a mythological Argus to keep an eye on all that is happening as one giant swallows another in this situation of mergers and acquisitions of multi-billion businesses.

Why is it happening? Where will it end? It’s all come to a head in the past month or two, with mergers proceeding apace, and it is almost impossible to keep up with the trends!

Click here to see a timeline of how GalaCoral, a multi-billion UK operation, has come to be. GalaCoral has more recently taken over Ladbrokes (a familiar UK gambling brand), and online betting company 888 has now almost agreed the £900 million takeover of Bwin.party (a global digital entertainment company with market leading positions in e-gaming, including the well-known Foxy Bingo).

Who owns who doesn’t really matter to the average eGamer, but it sure matters to the British economy. It’s now a case of where the game is played – the place of consumption rather than place of supply (Gambling Licensing & Advertising Act 2014). So British eGaming providers have had to close ranks. They need to come together.

These major changes in the regulatory regime in the UK could well be responsible for the consolidation of eGaming suppliers. The smaller UK operatives may be unable to afford the licensing requirements so they can no longer resist buy-outs.

The British regulation of eGaming in the past year or so may also have spawned a sense of acquisitiveness among the “big boys” in the industry – those who can afford to take the hit and still profit hugely from banding together.

This trend may forecast global big brand acquisition. Globalisation is the way of the world in most business spheres, so why not eGaming? The internet crosses borders and is a universal resource. No wonder then, that the appeal of eGaming is global, and that companies involved in it (particularly if they are faced with over-regulation at home) are looking to make a profit in selling off their business to bigger operations with bases abroad, who have more resources and freedom.

It seems eGaming is final going global.