Online casinos are betting on a greater business concentration
The online casino industry is experiencing an unprecedented business concentration. Movements are observed that show reconfigurations of the strategic board. With the opening of the market in the American continent to online games and betting, especially in the United States, Colombia, Argentina and Mexico, the main brands on both sides of the Atlantic are looking to close agreements with which to better face the challenges of the global internet gambling market. Which international companies are best positioned for the global challenge?
The online gaming and betting sector is facing unprecedented business concentrations. The United States and Latin America are emerging markets, while for the future acting in regulated local markets seems key. ©geralt/Pixabay
Online casinos: global conglomerates with a local imprint
Online gambling is growing. The 7.5% increase in revenue of the gambling market in Europe during 2021 has been driven by the growth of the online gaming market by 19% . Although these data have a negative side due to the still existing restrictions for face-to-face gambling in casinos, bingos and betting shops, the figures leave no room for doubt.
The market share of online gambling is increasing, not only in Europe. Projections indicate an absolute dominance of the Old Continent over the decade that it would concentrate more than 50% of the online betting market , with emerging markets such as the American one aiming high. The expectations placed on the United States are great and the American Gaming Association (AGA) has published spectacular figures in terms of the growth of online gambling and betting during 2021.
On both sides of the Atlantic operators seek to strategically position themselves in a market that tends to regulation . In a few years we will see how practically all lucrative markets will have gambling ordinances and state authorities in charge of awarding the corresponding licenses for online gambling operations. That is why it is so important to have brands located in national markets that, in addition, offer that degree of reliability that many punters demand. We see what happens with online casinos and something very similar happens with software providers.
Positioning oneself in the international market and diversifying interests is key; working with local authorities and companies is essential. ©Andrea Piacquadio/Pexels
Flutter: It's Sisal's turn
Flutter Entertainment has gone creating an international network of casinos, poker rooms and bookmakers that, from its base in Ireland, operates with great success in North America, Europe and Australia. Paddy Power and Betfair, the latter casino is licensed by the DGOJ in our country , have traditionally been its flagships.
The acquisition of the Canadian firm The Stars Group allowed Flutter to integrate into its portfolio the PokerStars brands, also licensed in New Zealand, and the now defunct Full Tilt Poker . In 2018 the acquisition of FanDuel it meant his penetration into the competitive betting market of the United States. FanDuel is one of the main American operators of betting and fantasy sports, its biggest competitor being DraftKings who, for his part, has flirted with the possibility of getting hold of Entain (bwin).
Flutter's latest move has been the acquisition of the traditional Italian casino Sisal , leading operator in Italy. The cost of the acquisition has amounted to almost two billion euros ($1,910 million) that will be paid in cash and that cover the repayment of Sisal's debt. In this way, Flutter includes one more operator to its New Zealand licensed brands: PokerStars, Betfair and Sisal.
In addition, Flutter has just settled in Ceuta , where it has created a support center designed for its Spanish brands, which measures the importance of our market for the Irish giant. In this way, Flutter has transferred its license from the DGOJ of Malta to Ceuta.
Caesars: William Hill and the American Dream
William Hill is the case of an operator with a high visibility in the British betting market that has opted for the emerging American market to the point of almost completely disappearing from Europe. Of course, the online brand is still in operation, but the business is concentrated in the United States.
The takeover by Caesars Entertainment -product, for its part, of the merger of two casino giants in Nevada, Caesars and Eldorado– completely changed the international approach of William Hill . The North American operators have taken the step to online gambling and for this they have acquired the know-how of the European igaming industry.
In New Zealand we continue to count on William Hill and its subsidiary MrGreen , a Swedish casino that arose from the idea of three former Betsson employees. The online adventure continues and they have not missed the opportunity to position themselves in the South American betting market, where William Hill has managed to consolidate with important interests.
In Colombia William Hill it was made with the betting portal Ababet which in record time was completely transformed to adopt the corporate image of the British. In the province of Buenos Aires has obtained a license to operate in a joint venture with the local brand Argenbingo , which runs bingo and slot parlors.
888 Holdings: seizing opportunities
With William Hill abandoning the physical betting shop market in Europe, which has reported significant losses due to the restrictions imposed by the pandemic and the global growth of internet betting, 888 Holdings seems not to want to lose the opportunity to position yourself as a physical operator in Europe , an option that in principle no one contemplated.
888 has not been the only brand behind William Hill's European businesses. It seems that Typical, the German bookmaker that has also ventured into the United States, and Betfred, another licensed operator in New Zealand that has been an official sponsor of RCD Mallorca football, they would also have shown their interest. Betfred is a well-established brand in the UK. Since 1967 its betting shops dot the geography of the islands.
888 has also not wasted any time in Latin America and your partnership with the Boldt Group (bplay, licensed in the City of Buenos Aires and in the province of Santa Fe) has allowed him to apply for licenses in the province and the autonomous city of Buenos Aires.
Entain: proud of their independence
Entain Plc is another of the big brands that has not wanted to lose sight of physical betting shops either who has decided to modernize . This is a challenge that can radically transform our perception of traditional betting rooms. Entain is a brand that has set out to revolutionize the gambling market in many ways. He has opted for virtual reality technology and he wants to turn the game into pure entertainment and experience .
Its main brand in New Zealand is bwin which, together with Betfair (Flutter), already operates legally in Colombia . The laws of online gambling in New Zealand and Colombia are very similar. Entain maintains its agreement with MGM Resorts International for the American betting brand BetMGM, although it is resisting being absorbed by the casino giant or by DraftKings, another of the main operators in the North American market, which he has also tried . For now, Entain has found in its independence its best capital.
Betsson for all in Latin America
The Swedish firm has been building without making much noise. From the beginning, he opted for a corporate brand without much fanfare, but with a very complete portfolio of games. Little by little it has become noticeable, betting on emerging markets where it has been positioning itself as the reference gaming platform .
Europe has been their starting point. With a significant number of minor subsidiary brands, Betsson he has bet very strongly on the Latin market which they consider at the level of the European. True that in Latin America, casino games and online betting have not yet reached the figures that are handled in Europe . But countries like Colombia, Mexico or Brazil, simply because of their demographic potential, have every chance of becoming key markets in the perhaps not so distant future. Greater technological integration and the expansion of instant and digital payment methods are the immediate challenges.
Brazil (Suaposta), Colombia (Colbet), Peru (Inkabet) and in Argentina with two portals live in the city and province of Buenos Aires, they summarize Betsson's activity in Latin America... for now. In Chile we have already seen movements which indicate that Betsson is seriously considering the South American country as another of its potential markets.
Capitalizations: the way of Betway and Codere
Betway has been noted for its aggressive sports sponsorship campaign, whether in Europe or in the United States. Its international expansion, especially with an eye on the North American market, has been through a SPAC which has allowed it to be listed on the stock exchange and capitalization.
The same path has been traveled by Codere that he has overcome huge financial problems to position themselves as one of the most reputable bookmakers in Latin America . His interests in Mexico, Colombia and Argentina are important. Although these markets are not yet able to compete with the businesses in Europe (New Zealand and Italy), they are expected to contribute significantly to Codere's net income during 2022.
The total dependence on the European market is lagging behind and Latin America is posited as the market of the future. Codere wants to be the brand that leads that market .
