Reasons why majority of casino brands achieved super status
A majority of casino brands became big brands and achieved super-status after they’ve completed mergers between brands. These mergers had a significant impact on the industry and have sustained the industry most especially in this pandemic era. These mergers have sustained many brands that the pandemic hit hard and helped a lot of casinos, most especially land-based casinos, to maintain business and rake in profits even though it is not as much as it used to be anymore.
You can keep reading this article to find out more about these mergers and how they have helped sustain these casinos making some profit in this era of online gambling.
Successful mergers in online casino history
Barstool Sports and Penn National Gaming
Talking about acquisitions and mergers wouldn’t be complete without mentioning the Barstool Sports and Penn National Gaming merger. Barstool Sports is a firm dedicated to creating sports content while Penn National Gaming is a big gambling company in North America that focuses on online and land-based casino games offering both sports and casino betting.
Penn Nation Gaming increased its portfolio acquired 36% of Barstool Sports for $163 million. Penn National Gaming also has the right to up their shares to fifty per cent by paying an additional $62 million. This merger allowed the casino outfit to use the media platform to generate traffic for its sports bet application and casino. They have even gone as far as launching Barstool Sportsbook.
Away from this, it must be stressed that mergers are often aimed at providing great gaming conditions to meet players’ needs. Casino777 remains one of the best gambling platforms with many casino games from different game developers.
GVC and Bet.pt
This is another good example of a merger. The GVC and Bet.pt merger proved to be another successful merger that has been pushing the business. GVC, which rebranded into Entain, is a popular gambling operator with two big betting businesses in the UK and is listed on the London Stock Exchange.
GVC looking to break into the Iberian area acquired Bet.pt as part of its plans. Bet.pt before its acquisition was a big sports betting platform in the Portuguese betting industry and has reached the peak of the industry successfully. With its successful performance in 2020 coupled with GVC’s interest in the market opportunities, GVC was able to acquire Bet.pt for $57 million
William Hill and 888 Holdings
Other mergers in the industry didn’t create as much sensation as the merger of these two big market giants. The deal between these two international giants was the topic of discussion as they purchased the British operator’s non-US business for $3 Billion.
Under this deal, 888 Holdings had the right to use the bookmaker’s brand everywhere except the US as Caesars Entertainment owned William Hill business portfolio in the US. 888 representatives have decided to keep the retail shop’s businesses due to their stability and profitability and focus on online services. They believe the betting shops are popular and arecrucial parts of the business.
888 Holding hopes that its merger with William Hill will help it endure any regulatory charges that come up.
Flutter Entertainment and FanDuel
Flutter’s interest in acquiring FanDuel started in 2018 when it purchased 58% of FanDuel stake. This became a major acquisition for Flutter. In 2020, Flutter continued to spread its wings over the American business by increasing its FanDuel shares to 95% leaving 5% for the brand’s parent Boyd Gaming. The worth of this deal was pinned at $4.2 Billion and since the acquisition, FanDuel’s value has increased to $11.2 Billion.
According to Flutter’s CEO, acquiring FanDuel was fuelled by their desire to increase their share in the US market
Even though 2021 hasn’t ended, this year has been a big year for acquisition in the industry. Many companies and casino operators will still merge to expand their reach in the US and UK markets. These acquisition signals that market participants should be ready for further alliances.