The Top iGaming Mergers & Acquisitions in 2021

If 2021 has proven anything, it’s the fact that nothing can stop the juggernaut iGaming industry in its tracks. Multiple deals have been signed across the year. Multiple deals are still ongoing to secure various USA online casino sites and brands, so we can all expect to see more mergers and acquisitions yet from early 2022 onwards. But let’s recap and look through some of the top deals from 2021 that made the headlines and caused many heads to turn when pen was put to paper. These are in no particular order, but there is one running theme throughout them all: the vast sums of money involved.

William Hill Acquired by Caesars Entertainment

One of the most significant betting and online casino stock deals in 2021 was the acquisition of William Hill by Caesars Entertainment. In what was seen as quite a surprise in some corners of the iGaming world, Caesars decided to snap up the famous and long-standing Will Hill for a total sum of $3.04bn. The US arm of Will Hill was quickly kitted out in full Caesars branding for new launches in various states, such as Michigan and West Virginia. 

The UK side of the Will Hill business is something the US firm was always looking to sell, and more on that shortly. But the US side of things was always intended as a quick turnaround for Caesars. Ultimately, it allowed the group to hit the ground running when entering new states, with much of the licensing already in place.

Bally’s & Gamesys Merger

It has been a year of full-on business action at Bally’s, with a string of acquisitions and mergers since its rebranding project from Twin River Worldwide Holdings at the end of last year. Perhaps one of the most notable deals over the course of 2021 was the $2bn merger between Bally’s and Gamesys. This was more of a traditional agreement that saw the power of US branding team up with European software that is already fully licensed and regulation-ready. 

Not too dissimilar to the deal we mentioned above between Caesars and William Hill. We will probably be seeing more of these US-Euro partnerships in the coming months as brands seek to expand their capabilities in the online gambling world. Monkey Knife Fight and SportCaller are two other significant deals that Bally’s decided to seal in 2021.

DraftKings Busy As Ever

DrafKings has had a busy time doing deals since it went public in April 2020. Most notable in recent months was the massive $1.56bn deal that saw DraftKings take over Golden Nugget Online Gaming (GNOG). Various terms were written up for the deal, including the new position for DraftKings as the official partner of the Houston Rockets. Talks of a sportsbook within the Toyota Center have also been proposed, subject to state approval. The five million-strong Golden Nugget database is also a big talking point behind the deal, which has enormous potential once coupled with the existing DraftKings network.

It has been a busy year for DraftKings, which also acquired Blue Ribbon software, famous for its gamification services and global jackpot technology. We can’t not mention the ongoing talks of that shock $20bn+ offer for Entain, either. DraftKings is certainly not prepared to rest or sit by and watch competitors make any detrimental moves to its own business plans. It continues to stay on the front foot and clearly intends to adapt and build on its solid foundation with yet more gambling stock.

William Hill UK/EU by 888

Interestingly, the next deal ties in with the first one we mentioned regarding Caesars and Willam Hill. We mentioned that Will Hill was bought out by the giant Las Vegas operator, Caesars Entertainment. However, it didn’t take long for the US firm to find a buyer, which happened to be the 888 Group with a $2.2bn offer. William Hill’s European business arm is set to transfer to 888 in the first quarter of 2022. 

So, technically, the deal is not yet quite over the line, but it’s as good as done in the eyes of most people in the business. Notably, this includes 1,400 betting shop venues within the UK. It’s no surprise that 888 wanted to secure a deal with such a legendary gambling brand. The combination of 888’s online presence and William Hill’s status online and offline is set to create a compelling opportunity for the newly formed gambling group.

Penn National Continues to Cover North America

Penn National is another group that has not let the recent months stop any progress in tying up deals and securing lucrative acquisitions. The one deal that made the biggest splash across the industry was its $2bn deal with Score Media in Toronto. The website, theScore, is a huge source of betting information, and with four million active daily customers, it’s no wonder Penn National wanted full ownership. The user base stretches over the US and Canada, so again, there is a lot of potential and coverage available. 

All of this comes off the back of a deal in which Penn National acquired a stake in the popular Barstool Sports for just over $160 million. The deal has already witnessed the arrival of Barstool Sports betting apps across Michigan, Pennsylvania, and Illinois. The one deciding factor that pushed Penn National to target the whole of Score Media was the fact that this is a company that focuses on “in-house” technology. Ultimately, it means Penn National can start cutting ties with its various third-party platforms. All of which will help boost its revenue margins once the deal is sealed in the first quarter of 2022.