What we called the Teutonic Invasion a couple of years ago continues unabated.
The purchase we confirmed this week, of Playnation by Novomatic, brings it all sharply back into focus. My understanding is that this is not the extent of the activity in the UK market by German/Austrian companies and more is to come, even if it has to be further speculation on our part.
Novomatic (Austria) and Gauselmann (Germany) are great European rivals. They have interests in many, many countries, inspired by a lack of confidence in their own domestic market (in the case of Germany) or fettered by monopoly (in the case of Austria). Both have wisely chosen to seek "insurance" in other markets.
It is perhaps even wiser that they choose the UK. Of all the European "AWP" markets, the UK has perhaps the best current credentials. It isn’t the largest market (Italy is), it doesn’t give the best return (Germany does), the laws are not the most liberal (Spain’s are), but it has a couple of other credible qualifications. Firstly, it is a very stable market for gaming; well organised, if messy with lots of sub-categories; and secondly, it is outside of the eurozone, which is looking shaky.
The only potential question-mark is the very real prospect that the UK will pull out of the EU altogether, tired of footing the bill for the dubious admission of unqualified EU members and various other unpopular impositions by the great unelected pen-pushers in Brussels.
Politics to one side, however, the British industry is ripe for takeover. Much of it is underfunded, or over-exposed – the natural progression from underfunding – and that leaves it vulnerable to predators. My own view, put before and reiterated here, is that if the Brits cannot fund themselves then German/Austrian funding is welcome.
The no-messing attitude of the Germans and Austrians might also be beneficial in that they will jointly bring some order to a chaotic imbalance of internal power within the British street market.
Some of the issues were outlined in our recent editorials on the demise and resurrection of Sceptre into Regal. The full story is still work in progress.
