The betting and gambling industry is an aggressive market evolving constantly, with mergers and takeovers taking place all the time. Gambling M&As reached £5bn in 2016 contributing to high profits. Special infographic created by Casino UK is presenting a timeline of mergers and acquisitions within the gambling industry and explaining step by step how it all happened.
Most of gambling earning reports for 2016 did not present the similar great results as companies which did M&As, like e.g. Paddy Power Betfair with its full-year revenues expecting to be up to 18% achieving almost £1.55bn, and Ladbrokes Coral Group expecting a profit for 2016 within the range of £275m-£285m which states for almost a 20% increase comparing to 2015. It clearly proves that M&As played an important role in this big growth.
Paddy Power Betfair (PPB) successfully merged together back in February last year, and Ladbrokes reached an agreement to merge with its rival, Gala Coral Group in July 2015.
However, M&As did not only contribute to gaming operators in 2016. Catena Media acquired several iGaming affiliates with mipressive acquisitions including AskGamblers and Casino UK. Similar situation can be visible in regulated US affiliates like PlayNJ and USPoker. They have consequently seen their share price increase 250% after their IPO in February 2016.
Conversely William Hill that rejected a partnership with 888 and Rank of a takeover have seen their profits fall £20mn below expectations. Its profits reached around £260m which constitutes to around £30 less from profit reported in 2015.
This year we could see one of the biggest mergers in the gambling industry with Tabcorp and Tatts which control 95% of Australia’s betting market expected to come together soon. The impending merger between FanDuel and DraftKings is also set to be completed.
As commented by Catena from UK’s Head of Marketing Varun Mathure: “seeing the results from 2016 it is the clear that operators and affiliates involved in M&As stole a march on the competition. With governments across Europe pursuing regulation of the gambling markets, we can expect to M&A trend to continue.”