A Detailed Look at 125 Billion Dollars Spent on iGaming Acquisitions
A recent study uncovers valuable insights into the history of mergers and acquisitions in the iGaming industry, dating back to 2001. The report showcases the market’s evolution from million-dollar acquisitions to billion-dollar mergers and shows that more than $125 billion has been spent on iGaming companies in less than 25 years.
The study includes a list of yearly iGaming acquisitions and highlights the top 10 most significant acquisitions of all time, such as the merger of Paddy Power and Betfair in 2015 with a sale price of $7B. The report also shows the number of sales and financial information per annum in 2022, holding a record sales total of $19 billion.
The in-depth research was published by the award-winning iGaming site Bojoko.com in February 2023 and will be continuously updated. By analysing the report’s findings, we can identify key trends and developments in the industry, offering a more comprehensive understanding of the market’s evolution.
This article examines the most critical milestones of iGaming acquisitions, as presented in the record.
The year 2001 saw Sportingbet acquire Sportsbook.com for $51M, thus initiating a sequence of acquisitions.
However, the industry took a few years to experience larger-scale deals. Between 2001 and 2005, the acquisition deals varied in value from $14.5M to $297.5M. It wasn’t until 2006 that the sector observed a historic acquisition when Lottomatica agreed to acquire GTECH for a whopping $4.7 billion on January 10th, 2006.
This deal held the record as the most significant sale until 2013 when billion-dollar purchases became more frequent in the headlines.
Even though the scale of sales has continued its exponential growth, no year has seen more record-breaking acquisitions than 2014.
In 2014, we saw the following deals made:
In its time, the acquisition of Bally Technologies by Scientific Games was one of the biggest transactions in the history of the iGaming field.
The event marked a significant consolidation in the industry, creating a powerhouse with a wide range of products and services for both lottery and casino gaming. This acquisition still holds the 4th place in the top 10 biggest iGaming sales of all time.
It was notable when Amaya Gaming, a Canadian online gaming company, acquired two of the world’s largest online poker platforms.
Amaya’s acquisition of PokerStars and Full Tilt Poker significantly influenced the iGaming sector. For example, Amaya’s takeover allowed PokerStars to re-enter the U.S. market, paving the way for legal online poker in several states like New Jersey and Pennsylvania and significantly expanding the industry’s reach.
This acquisition also intensified competition by prompting other operators to innovate and improve their services. Ultimately, it benefited players with more options and better overall gaming experiences.
You can still spot this deal on the 5th placement of the top 10 largest sales.
GTECH’s acquisition of IGT was another significant transaction that combined two leading global names.
This acquisition created one of the world’s largest gaming companies, combining GTECH’s expertise in lottery systems and services with IGT’s strength in casino gaming solutions. The merger is the 7th biggest acquisition on the top 10 list.
In September 2015, Paddy Power and Betfair completed a merger valued at approximately £5 billion (roughly $7 billion), giving birth to Paddy Power Betfair, later rebranded as Flutter Entertainment. This transformative move created one of the world’s largest and most influential bookmakers, boasting over 7,000 employees.
In the annals of iGaming history, the merger between Paddy Power and Betfair stands as a towering achievement. To this day, it remains the largest deal ever witnessed in the industry.
The global COVID-19 pandemic significantly affected various industries worldwide, and the iGaming sector was no exception. In 2020, the industry saw a fairly typical year, with a total of 18 deals. However, in the following year, 2021, there was a remarkable spike in transactions, with 53 deals taking place. This represented an astounding 194.44% growth compared to the previous year.
Moving into 2022, the industry managed to surpass the previous year by a small margin, recording a total of 57 sales and reaching its highest-ever sales total of $19,109.4 million. In 2023, there were 77 sales, but the total sales amount only increased to $7,223 million.
So far in the 2020s, there have been approximately 211 acquisitions or mergers in the iGaming sector, resulting in a total financial exchange of $49.3 billion.
This remarkable growth can be attributed to several factors, including the increased demand for online entertainment during lockdowns and social distancing measures, the rising popularity of online gambling, and the overall expansion of the iGaming industry.
With COVID-19 no longer imposing restrictions on physical gambling venues, the future impact on acquisitions and mergers in the iGaming industry remains uncertain.
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