TopGambling

Mergers and acquisitions are nothing new in the iGaming industry. And although we have seen some significant buyouts in recent years, it’s not as if they are uncommon. Players – and affiliates – usually greet the news with a shrug, but there are occasions when consolidation sends shockwaves through the industry, or at least can have an outsized impact on our experiences. And, when we look back at Evolution Gaming’s moves over the last year, you can argue that it will have a huge impact on iGaming going forward.

Most casino players are familiar with Evolution Gaming, a Swedish-based software company that was founded in 2006. To be fair, the first decade or so of Evolution’s existence was unremarkable. It made some waves in live gaming software solutions for the industry, but nothing ground-breaking. But with the roll-out of live casino games really took hold in the mid-2010s, Evolution found its feet.

[B]Playtech live experience still preferred by some
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Today, Evolution is perhaps the most familiar name in live casino. Sure, some players might prefer to [URL="https://www.casino.com/live-dealer/live-blackjack/"][U]play Playtech’s stylish live blackjack tables[/U][/URL], but Evolution is certainly the most ubiquitous brand. And, because live casino suddenly became so popular, the company found itself accelerating in size. To put it into perspective: Evolution’s stock price has risen by approximately 2,700% over the last five years.

And now, Evolution wants more than just being the top dog in live casino. It is looking to the (virtual) online sector to beef up its library and become one of the more dominant players in the industry. Perhaps most significantly, it [URL="https://www.finsmes.com/2020/09/evolution-gaming-to-acquire-netent-for-approx-2-1-billion.html"][U]agreed on a deal to buy NetEnt in December 2020[/U][/URL]. NetEnt makes some of the most popular games in the industry, including Starburst and Gonzo’s Quest, and it was itself seen as a big player. The company is now in Evolution’s hands after a $2.1 billion deal.

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As it stands, the NetEnt brand and studios remain, as does NetEnt’s other subsidiary – Red Tiger – but Evolution has also moved into its own virtual games range. It recently launched Evolution “First Person”, a range of virtual table and card games. The games are impressive in terms of presentation, although not terribly different from what is on the market already. However, one of the main differences is the ability to switch between the First Person games and Evolution’s live tables – the kind of seamless lead conversion any [URL="https://www.gpwa.org/affiliateprograms/"][U]affiliate marketer[/U][/URL] will appreciate.

[B]Evolution has agreed to buy Megaways creator
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More recently, Evolution has moved to make another acquisition, agreeing on a deal to buy Big Time Gaming (BTG). While not as large a company as NetEnt, Australian developer BTG is known as being among the most innovative brands out there. For example, it created Megaways slots, which it now licenses out to rival companies (including NetEnt). At $534 million, the deal is nevertheless a hugely significant one.

So, we now have a situation where the most important developer in live casino software now owns two of the most important virtual developers (NetEnt also makes live games), although we should stress that the BTG acquisition has not yet been finalised. Is this a good thing for the iGaming industry? It’s difficult to say.

You see, the developer level of the online casino industry has always been enriched by the level of competition. It is this factor that allowed, for example, NetEnt to rise up and challenge the dominance of Playtech in Microgaming, and, more recently, companies like BTG to come up with fresh ideas – like Megaways – to upset the established order. Having several big brands under one roof might stymie that creativity a bit.

[B]American expansion on the cards
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Then again, it’s not as if Evolution, NetEnt and BTG represent the only interesting brands in the industry – it’s still a relatively small slice among dozens and dozens of developers. Indeed, it has been pointed out that Evolution has designs on expansion to the US market, which still has huge potential for online growth since the Supreme Court decision in 2018 allowed states to overhaul their gambling laws. In that sense, Evolution might be happy to continue to play to its strengths rather than attempt a monopoly in established markets.

But it will be worth watching out to see whether Evolution makes any more moves. Because, as mentioned, the industry’s main strength has always been the diversity of its products. Should one brand become too powerful – holding all the aces – and force casinos into, for instance, exclusivity deals – the iGaming industry could suffer.