Major M&A Deals in iGaming 2024-2025
The iGaming and broader gaming sectors experienced a robust surge in Mergers & Acquisitions (M&A) activity in 2024, a trend that continued into 2025. This wave is characterized by market consolidation, strategic technology acquisitions, and heavy investment in regulated markets (especially the U.S., Italy, and Brazil).
Disclosed M&A deal value across the entire gaming sector (including iGaming, mobile, and PC/console) hit US$10.5 billion in 2024, marking a significant increase in volume and deal size.
Major M&A Transactions in iGaming (2024–2025)
The following deals reflect key strategic objectives: regulated market expansion, consolidation of tech platforms, and capturing the growing mobile segment.
Key M&A Drivers and Emerging Trends
The surge in deal activity is a response to both market maturation and the increasing demand for specialized digital capabilities.
1. Consolidation in Regulated Markets
The primary focus for large operators is achieving scale in regulated jurisdictions. Deals like Flutter’s acquisitions in Brazil and Italy, and its full control of FanDuel, underscore the strategy of buying market share and securing technology in newly or rapidly growing legal territories.
- US Market Focus: Acquisitions often target existing licenses and operational platforms in established U.S. states (like New Jersey, exemplified by the Boyd Gaming/Resorts Digital deal).
2. Tech and Platform Acquisition
There is a growing emphasis on acquiring B2B technology providers and game studios to gain control over the full supply chain and differentiate product offerings.
- Platform & PAM: Acquisitions focusing on Player Account Management (PAM) and proprietary sportsbook technology are crucial for reducing reliance on third-party suppliers and leveraging technology across different jurisdictions.
- Affiliate Consolidation: Affiliate marketing and lead-generation companies are also active acquisition targets, as larger firms look to control customer acquisition channels efficiently. Gambling.com Group, for instance, reported record results fueled by M&A in this space.
3. Private Equity Involvement
Private equity (PE) firms played a significant role in M&A activity, accounting for approximately US$3.9 billion of the total disclosed deal value in 2024. PE interest often signals confidence in the long-term, stable cash flow models of established gaming businesses.
4. Challenges and Headwinds
While the outlook is positive, M&A activity faces challenges:
- Regulatory Scrutiny: Cross-jurisdictional deals, especially in the gambling sector, require extensive regulatory approvals across multiple states and countries.
- Valuation Risk: Many deals involve substantial contingent payments or earn-outs (e.g., Playtika/SuperPlay), meaning the final deal value is dependent on the acquired company’s future performance.
- Cost Pressures: High customer acquisition costs and the rising tax burden in key markets necessitate acquisitions that deliver significant cost and scale synergies.
Outlook for 2025 and Beyond
The M&A environment is poised to continue its strong pace through 2025, with potential shifts toward even larger, more complex deals and a deeper focus on technological infrastructure. Companies will likely look to divest non-core assets to focus their capital on high-growth regulated verticals.
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