Date: October 11, 2024, 05:04h.
Last updated on: October 11, 2024, 05:04h.
Mergers and acquisitions within the North American sports betting sector have been active this year, with companies acquiring new technology and expanding into different market segments.
Experts predict that this trend will continue in 2025, with online sportsbook companies focusing on enhancing customer acquisition tools and venturing into new areas like internet lottery. For example, DraftKings acquired lottery provider Jackpocket for $750 million earlier this year.
According to Chris Grove, a partner at Eilers & Krejcik Gaming (EKG), betting operators will show interest in customer relationship management technology and free-to-play games in the coming year. Sports betting/media partnerships are unlikely to see much movement due to previous deals not meeting expectations.
Driving Force Behind Sports Betting M&A
The need to enhance parlay offerings, especially in same-game and in-game parlays, could be a key driver of consolidation in 2025.
Operators are looking to improve their parlay menus, and there are still opportunities in the market for acquisitions, according to Grove.
Recent moves, such as DraftKings’ acquisition of Simplbet, indicate a focus on strengthening parlay options. Other operators may follow suit in 2025.
Grove also mentioned that iGaming could be a target for acquisitions next year, with a focus on technology providers rather than direct competitors to increase market share.
Compliance and Payments in Focus
Compliance and regulatory issues, including cybersecurity and geolocation, are significant concerns for online sportsbook operators. Acquisitions in this space could reduce costs, but economics could be a challenge, according to Grove.
Operators are also keen on streamlining payment processes through consolidation, but this trend may take longer to materialize.
Grove concluded that in-house payment processing is likely in the future, but the US market presents challenges that may delay this shift.