Australia's biggest gambling company, Aristocrat Leisure, has agreed to acquire Israeli gaming software company NeoGames for $1.5 billion.
The acquisition will give Aristocrat a stronger foothold in the online gambling market. NeoGames is a leading provider of online lottery games as well as online casino games, and its products are used by operators in many countries.
Aristocrat Leisure to enter iLottery market with NeoGames acquisition
The acquisition is seen as a way for Aristocrats to expand their reach into new markets and diversify their revenue streams. Aristocrat Leisure's strong growth has been driven by its ability to adapt and innovate in a competitive market. The company has been facing increasing competition from online gambling operators, and the acquisition of NeoGames will help it to compete in this growing market. iLottery is an exciting area of growth for Aristocrat. NeoGames has been successful in a number of ways as the company has developed a strong portfolio of iLottery solutions and services that are in high demand around the world.
The acquisition is also seen as a way for Aristocrat to tap into the growing popularity of online gaming. The global online gambling market is expected to reach $100 billion by 2025, and Aristocrat is hoping to take a slice of this growing pie.
The acquisition is expected to be completed in the 2024 financial year, subject to regulatory approvals.
Aristocrat - Playtech Deal Fell Through But They Will Continue
Aristocrat and Playtech were ready to tie the knot. In the world of Business2Business casino game manufacturers, the news was huge. Aristocrat was ready to transfer $2.9 billion into Playtech's account as part of the acquisition deal they had recently agreed upon. At the 11th hour, some of the investors refused to support the deal. They were 20% short of the needed 75% votes.
Who Is Aristocrat Leisure?
Aristocrat Leisure is the second biggest land slot machine manufacturer on the planet and Australia's pride and joy. With a humble beginning in 1953, the company now serves the needs of a massive plethora of players Down Under, New Zealand, as well as 90 other countries worldwide with quality offline and online casino products. If you've ever been to Vegas, you must have seen their Buffalo slot in every casino you set foot in, as it's the most popular classic slot you will find in Sin City.
If you've spent a fair amount of time playing online, you most definitely came across top Aristocrat online pokies like Queen of the Nile, Zorro, Big Ben, or Pompeii. The Australia-based provider has won the title the Casino Product of the Year for the highly successful Walking Dead slot. Their innovative products, advanced technologies, and cool graphics propel them on top of many gamblers' list of casino game providers.
Aristocrat also owns Big Fish Games, a large video game creator and distributor for casual players. In August 2021, Aristocrat officially expressed its plans to expand its business revolving around digital games after agreeing to acquire Playsoft and Futureplay. These are two gaming studios dedicated to mobile games. Aristocrat also has plans to open a fresh development venue in Finland.
Who Is Playtech PLC?
In order to understand Aristocrat's interest in Playtech PLC, we should first quickly go over the main highlights of this provider. Playtech is also an irrefutable gambling market leader running the biggest purpose-built live casino venue in the world.
The company is also busy being one of the most successful suppliers of online casino software with operations in 24 countries and counting. Age of Egypt, A Night Out, Age of the Gods, Beach Life and Fruit Mania are just a few of their most popular pokies you can find at top real money casinos.
Prior to the company being acquired by Aristocrat, Playtech had plans to sell Finalto, the financial division of the company. Its investors finally agreed to sell Finalto to Gopher Investments for no less than $250 Million, with the main purpose of spending more time working on its main gambling business. This was in spite of their original 2019 idea to divest because of their poor performance.
What Does Aristocrat's Failure To Aquire Playtech Mean For The Industry?
There are many
More Online Real Money Casinos
With the rise of smartphones and another cord-cutting tech, the casino industry is experiencing a surge in online casinos. These online casinos offer players a more interactive, personal experience with games that are designed just for them. Both Aristocrat and Playtech have brilliant software that powers fantastic online casinos.
More Innovative Pokie Machines
If Playtech splits its assets and works with other companies it will see growth in other areas. They do have a wonderful variety of online pokies. In fact, some of our expert-reviewed online casinos are powered by this software company. Maybe Aristocrat will buy a smaller element of Playtech. Only time will tell but we will continue to enjoy the top casinos in Australia that use Aristocrat-powered pokies.
Expanding into the UK, US and NZ markets
In an ever-changing world where businesses can forge links for future growth, we look forward to hearing where the next growth market is. The development of both online and land-based casinos in New Zealand has been very steady in recent years. Maybe this is a market to forge links in. The US and UK markets are heavily regulated yet are open to working with new markets. We will be looking at Aristocrat as a giant of Australian business.
Aristocrat Doesn't Buy Playtech: What Should Shareholders Expect?
The tech world is now looking to see if these giants will find different partnerships or concentrate on developing the services they provide. Both of these entertainment giants offer awesome services and have brilliant talents. Companies of this size do not standstill. I expect we will see great new innovations from both companies.
Final Considerations
In the world of B2B and mergers, there is no time to catch your breath. These companies will keep on offering great products.
