The legalisation of online gaming in the US could see companies occupying the traditional bricks and mortar space seek strategic acquisitions, according to one financial analyst.
Richard Carter, gaming equity research analyst at Deutsche Bank, told delegates at Wednesday’s World Gaming Executive Summit in Madrid, Spain, that both low valuations and new regulation are likely to be drivers of greater merger and acquisition activity in the gaming industry.
In recent years, the market in Europe has witnessed a new level of consolidation as new markets have opened up to online gaming but tight restrictions have made operating difficult, prompting companies to seek partners.
Now, with one eye on the US market which continues to move towards some form of legal online gaming, established land-based companies are positioning themselves to be able to react quickly when the market there opens. One example, said Carter, is the recent acquisition by slot manufacturer IGT of Swedish online gaming solutions provider Entraction.
US companies - including several other slot firms rumoured to be seeking suitable targets - will increasingly start to acquire both B2B and B2C gaming companies based in Europe in anticipation of the opening of this new frontier, he predicted.
