NetEnt acquires Red Tiger Gaming in a £220m deal

The iGaming giant, NetEnt, has made a giant leap forward after entering into an agreement to take full control of Red Tiger Gaming-the slot machine specialized firm- for a total sum of £220 million. This historic acquisition will be acquired in an all-cash deal which will see an initial consideration of £197m and an additional profit of up to £23 million payable in 2022 if certain conditions are met.

CEOs First Impressions

Following the acquisition, NetEnt chief executive, Therese Hillman was pleased and “very happy to receive Red Tiger in the NetEnt Group”

“I am very pleased to welcome Red Tiger into the NetEnt Group. The acquisition combines two of the leading and most innovative companies in the online gaming industry” Hillman Said.

He was also very optimistic and ready work with the Red Tiger’s team to take the gambling industry to the next level.

“We look forward to working with Red Tiger’s fantastic team to enhance our combined global reach and to offer further value to operators and players.” He stressed.

Hillman also added that the transaction will offer significant revenue synergies across the companies markets worldwide.

On the other hand, Red Tiger chief executive, Gavin Hamilton expressed his excitement and readiness to support this merger.

“This is an exciting new stage of the Red Tiger story and we are delighted to become part of the NetEnt group. Accessing NetEnt’s unparalleled distribution network and geographic footprint will unlock new opportunities for Red Tiger and will further accelerate our growth”

Red Tiger was founded in 2014

Red Tiger was founded in 2014 by the team of the online casino games provider Cayetano Gaming. Since then the company has positioned itself as a leading provider in the gaming industry, especially with its Daily Jackpots, which has been very successful among players. Red Tiger is the pioneering slot studio behind games like Arcade Bomb and Totem Lightning, and also created the popular “must drop” daily jackpots that pay out before a set time each day.  Currently, it has a staff of about 170 employees and operates in Malta, Bulgaria and the Isle of Man. Red Tiger’s earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to reach GBP 18 million for the full year 2019.

NetEnt’s vision to create the future of gaming

Red Tigers acquisition is in line with NetEnt’s vision to shape the future of gaming. For the past several years, NetEnt has invested in infrastructure globally with a focus on customer reach, regulated markets, and a supporting platform for scale. Through this acquisition, NetEnt has an opportunity to take the most of its scalable technology to back future growth.

Gambling trends in New Zealand Today

The past 20 years has seen tremendous bloom in the gambling industry globally.  In New Zealand, a major milestone was achieved in 1994 following the opening of the first brick and mortar casino. Today, gambling forms a huge societal makeup in New Zealand. With the anticipated growth in tourism in New Zealand, 2020 is sure to see increased activity in the gambling industry for both land-based and real money casino online and sports betting sites.

Live casino and Casinos online is a huge facet of the New Zealand culture today. A recent study found that New Zealand residents spend more than $2 Billion per year on gambling. 40% are believed to gamble every week. The study found.  The most forms of gambling include lotteries, racing sports, casino gambling with Online Pokies, Baccarat, Blackjack, Roulette, and Craps proving the most popular of the casino-style games and bringing in the bulk of the revenue.

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