In light of recent news of leading software developer Evolution Gaming acquiring fellow competitor NetEnt, this could well mean that a super brand is created in the technology iGaming world.
Already both companies have a considerable share of the market and this deal could well see a whale created in an industry that is already an ocean of motion. Mergers and acquisitions are nothing new in the online gambling world with the likes of GVC Holdings already arguably the largest operator group with over 20 brands under their umbrella.
The proposed fee is in excess of USD2.1 billion, which would mean that it is one of the biggest deals in the history of the industry. This has come as somewhat of a surprise to industry insiders, with NetEnt proving that they are more than capable of holding their own over the past decade, having developed some of the most popular slots and jackpot titles for a considerable number of operators.
There are many reasons why two of the leading software developers in the online gambling marketplace could be notable, especially when it comes to enhancing the player experience.
Already both developers boast a wealth of slots and games with many available to enjoy at such online casinos as Raging Bull Casino that has an attractive 350 percent matched bonus for new players in addition to 50 free spins.
Combining some of the most sought after technology expertise in the industry will undoubtedly lead to even better and more innovative slots and games to further enhance the brand’s reputation. This expertise which spans across both companies would now be merged into one big creative pool and this is only a good thing for both operators and players alike.
When it comes to workforce in a technology company, often efficiency is a problem, however a larger volume of employees will mean that projects for new slots can be broken down into much smaller teams, with each one working alongside each other, being on the same page.
NetEnt already has in excess of 700 employees and the knowledge that they have would certainly help to give Evolution Gaming a pioneering edge moving forward in the industry.
One of the biggest growing niches in the online gambling industry is jackpots, with the most popular developers often having the largest jackpots. Already NetEnt has a considerable reputation for creating large jackpot slots, some of which are popular titles as well. It could well be argued that by joining forces with Evolution Gaming, could see them dominate this niche for years to come, by not only offering much larger jackpots, but also leverage technology to develop more innovative titles as well.
It will be interesting to see how Evolution Gaming’s proposed acquisition of NetEnt will affect the rest of the market. This is because there are so many development companies currently in the industry and each one has their fair share of fans, but also especially as is the case for the smaller, newer ones, their own unique selling point.
In an industry that is so competitive with development companies competing fiercely with each other for a majority share of the market, it has never been more important for new software providers to be able to differentiate themselves.
While the bigger developers such as Microgaming, Playtech and Scientific Games might not be too affected due to their already established reputations, smaller software providers may struggle to stand out still to appeal to new players.
Often, it is a software provider’s ability to create new games, which are quality and also get them to market fast enough to be able to compete with their rivals that can make a difference.
This is where Evolution Gaming might have an edge, especially over smaller companies, should they acquire NetEnt.
With the industry predicted to almost double in value by 2023 to USD92.9 billion according to Statista, there is definite scope for software providers to increase their revenue, especially as technology continues to develop and present even more possibilities for the market.
For now though at least, it appears that it could well be Evolution Gaming who may end up making waves in an ocean of possibilities.
Written for OnlineCasino-Australia.com by Martin Jones - Published on 05-11-2020