The competition regulatory body of the UK is investigating the anticipated deal between gambling technology suppliers Evolution Gaming Group AB and NetEnt AB.
On September 22nd, the Competition and Markets Authority (CMA) revealed that the multi-billion acquisition of the aforementioned companies is being probed, as the country’s competition watchdog is willing to determine whether the combination of the two companies may result in a considerable reduction of competition within any market on the territory of the UK for goods or services.
Reportedly, both parties in the proposed acquisition deal were informed about the probe by the Competition and Markets Authority itself at the beginning of the week. The competition regulator has also established a deadline of October 5th, until which all interested parties would be able to make commentary on the proposed deal. As shared by the watchdog, the so-called “phase 1 decision” is expected to be issued by the CMA by November 16th. Still, the regulator made a warning that the preliminary set date for the completion of the first-phase decision was not a guarantee that it would be able to announce any official decision on that date. ‘
The Competition and Markets Authority is taking into consideration whether the transaction could create a relevant merger situation under the merger provisions of the Enterprise Act 2020 and if so, whether that situation may result in a reduction of the competition across any market in the UK.
CMA Has Had Probes into Some of the Largest Gambling Operators’ Deals in the UK
Last month, Evolution Gaming announced live casino deals with PointsBet and BetMGM, two US-facing companies. Yesterday, NetEnt revealed that it is launching an online casino in collaboration with Wind Creek, a Pennsylvania-based casino operator after a recent announcement of a deal that would result in NetEnt entering the online casino industry of West Virginia via BetMGM.
This is not the first time when the competition regulatory body of the UK has commenced a probe into an ongoing consolidation effort in the online gambling industry of the country, with mixed results for the parties involved in the investigation. Earlier this year, the multi-billion acquisition of The Stars Group from Flutter Entertainment was also subject to a probe, with the Competition and Markets Authority eventually giving the green light to the deal. Previously, in 2018, it also approved the TSG’s acquisition of the British online gambling company Sky Betting and Gaming.
However, the competition authority has not always been so benevolent. Several years ago, in 2016, it only allowed the merger of Ladbrokes and its then-rival Gala Coral after the two companies agreed to dispose of hundreds of their retail high-street betting outlets across the UK. At the time, the two gambling operators were ordered by the Competition and Markets Authority to sell some of their betting shops after finding that the merger would result in establishing a very dominant position for the Ladbrokes Coral Group in the retail betting sector of the UK.
- Author
Olivia Cole
