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Pokies Company Aristocrat Moves To Mobile Gaming With $1.3B Acquisition
The Sydney-based gambling machine manufacturing giant Aristocrat Leisure has enjoyed its prominence in the gambling industry for years as the second largest manufacturer of slot machines in the world. Now the company is moving into the digital gaming world as they have completed a billion-dollar takeover of a US-based casual gaming company known as Big Fish Games.
Big Fish Games Acquisition
Aristocrat welcomed 2018 with an announcement that they’ve completed the acquisition of Seattle’s Big Fish Games for $1.3 billion. Founded in 2002, Big Fish Games is the developer and distributer of many popular PC and mobile games such as the popular Mystery Case Files series. The company has developed both premium paid and free-to-play social casino games such as Big Fish Casino, Gummy Drop! and Fairway Solitaire. Big Fish Casino continues to be the company’s most successful title, regularly ranking in the top five most popular apps in the US.
The acquisition of Big Fish Games solidifies Aristocrat’s efforts in recent years to establish itself as a top player in the online social gaming market. As the online gambling industry continues its strong growth in the recent years, Aristocrat’s decision to tap the younger and more technologically savvy market will see the company looking to take advantage of the massive digital gaming push.
Aristocrat Expanding With Each Acquisition
The Australian pokies giant completed a strategic acquisition prior to its deal with Big Fish Games. Aristocrat bought out Israeli gaming company Plarium for $635 million a few months prior to the Big Fish acquisition. The Plarium deal started in August and was completed in December and added to Aristocrat’s impressive portfolio – Vikings: War of Clans which is Plarium’s most successful title.
Back in 2014, Aristocrat also acquired Video Gaming Technologies for $1.3 billion to secure its strength in the gambling machine business in North America. According to Adam Krejcik, analyst at Eilers & Krejcik Gaming, Aristocrat saw an estimated $292 million in digital revenue in the period that ended September 30, 2017. This is a 41 percent increase in digital revenue from 2016, which includes a $93-million boost in social casino games revenue.
Riding its digital growth momentum, the Big Fish Games acquisition will further Aristocrat’s position in the digital gaming sphere. The deal has effectively doubled the size of the company’s growing digital arm, which now accounts for 38 percent of Aristocrat’s total revenue. It has also made Aristocrat, the second largest provider of social casino games in the world, next to Chinese-owned Playtika. Aristocrat’s wide range of social casino offerings now include free-to-play online poker, table games, slots and bingo games for the smartphone and PC.
The $1.3 billion sum that Aristocrat is paying to acquire Big Fish is very close to the amount Churchill Downs paid when it bought the company in 2014.
In a statement, Trevor Croker, chief executive officer of Aristocrat, said “The strategic and financial benefits of this acquisition are highly compelling. Big Fish’s digital-first social casino content and industry leading meta-game capability and applications are highly complementary to Aristocrat’s existing and industry-leading land-based digital content business.”
Aristocrat Taking A Chance On Big Fish Games
Indeed, after the Big Fish Games acquisition, Krejcik estimates Aristocrat’s digital arm to generate over $1.1 billion in revenues and $250 million in EBITDA by the end of 2018. If Aristocrat plays their hand well, they may well be poised to overtake American video game developer Zynga, who currently has a $3.5 billion market value.
Aristocrat first came out with their plans to buy out Big Fish in November 2017 and the news was flagged by several of their investors. According to Macquarie Research, Big Fish has not been performing as well as its rivals in the digital segment for the past few years. The company was only able to deliver 2 percent revenue growth when its segment has been continuously growing at 15 per cent a year. Because of this, the acquisition announcement back in in November pulled Aristocrat’s share price at the Australian Securities Exchange (ASX) down to almost 7 percent.
As with many mergers, the new acquisition comes with various risks. Krejcik mentioned that the difficulty in merging the two large-scale social gaming companies emanate largely from the fact that Aristocrat’s operations will be widespread in San Francisco, London, Israel, Oakland, Ukraine, and Seattle. The company will have to focus on global operations and look to diversify its offerings across the global digital gaming landscape.
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Week 46/2024 slot games releases
Here are this weeks latest slots releases compiled by European Gaming
Spinomenal has welcomed another title into its Wildlife Series, Majestic Bison. Set in the Wild West, Majestic Bison surrounds players in a landscape populated with wild wolves, elegant eagles, fearsome snakes and formidable goats. A stripped back soundtrack captures the essence of the Wild West, with banjos and harmonicas immersing players in the action as they hunt for gold.
PG Soft, a world-class digital mobile games company, is celebrating the magic of the Rio de Janeiro Carnival with the release of its new slot, Rio Fantasia. A young dancer named Isabella is the star of the show as players join in the rhythm and passion of one of the world’s most spectacular parties. Rio Fantasia is a 3-reel, 3-row video slot featuring Stacked Wild symbols, multipliers, and respin until win.
Hölle Games has released Jumpin’ Jacks, a new Classic title featuring a special Duplicating Wilds mechanic. This 5×3, 15 payline slot has a theme of Halloween harvest, with scarecrows, pumpkins, corn, crows and a creepy midnight sky completing the picture. The atmosphere is there to match, with a cosy yet somewhat spooky soundtrack.
Belatra Games, the specialist online slots developer, has served up Cafe Pin-Up, a slot that whisks players away to a vibrant 1950s diner, where retro glamour meets thrilling gameplay. Players take a seat inside a charming cafe, where pin-up girls are on hand to deliver delicious dishes in a raucous atmosphere created by a jukebox playing toe-tapping tunes. The game is presented in a 5×4 grid with 20 paylines with the Pin-Up Girl Wild symbol playing the key role.
New from Peter & Sons comes Muddy Waters, a game that will send your Geiger counter up to 11. This high-volatility and highly radioactive slot comes packed with symbol multipliers, power-ups and a unique fishing mechanic. Muddy Waters riffs on the popular fishing-slot genre, but since this is the weird and wonderful world of Peter & Sons, it gets flipped on its head, because this game is about reeling in radioactive fish.
Relax Gaming, the iGaming aggregator and provider of unique content, is getting players into the festive spirit with its latest release, Money Sleigh, a Christmas-themed slot guaranteed to deliver stocking-filled fun and the chance to unwrap big wins. Santa and his team of loyal helpers are ready to guide players through this exciting holiday adventure, with the potential to win up to 10,000x their stake.
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AGREEMENT BETWEEN ZITRO AND GRUPO OSGA TO PROMOTE THE LABOT INTEGRATION OF PEOPLE WITH DISABILITIES
Zitro, a leading company in the gaming industry, has signed a collaboration agreement with Grupo OSGA, a business group committed to promoting the employment of people with disabilities. Grupo OSGA offers job opportunities to people with disabilities and supports their professional development in inclusive and accessible environments.
Through this alliance, Grupo OSGA will provide Zitro with a parcel and documentation service between its offices, optimizing Zitro’s operational efficiency and strengthening its social commitment to creating a more inclusive work environment.
At Zitro, we firmly believe in the power of diversity as a driver of growth and development. This collaboration with Grupo OSGA not only enriches our company but also reinforces our commitment to contributing to a fairer and more inclusive society,” said Albert Zorrilla, Managing Director of Zitro for Spain.
“The collaboration with a prestigious international company like Zitro not only constitutes recognition of the work that Grupo OSGA has been carrying out but also contributes to the generation of real opportunities for people with disabilities to achieve effective and stable integration in the labor market,” said Oscar Galilea, President of Grupo Osga.
Balkans
EGT Digital’s iGaming platform X-Nave and successful titles to deliver high-quality experience to BetHub’s customers
BetHub and EGT Digital have started their successful partnership, as a result of which the leading Bulgarian operator is now using the iGaming platform X-Nave. Its 4 main modules: CRM Engine, Sport product, Gaming Aggregator and Payment Gateway, enable the betting site to effectively manage all online gaming business verticals and further improve its performance.
CRM Engine provides a wide range of player management tools and bonus features, allowing the operator to create more personalized offerings for its customers, based on their preferences and behavior.
Through X-Nave’s Sport product BetHub will enrich even more the sport content it offers.
The Payment Gateway gives access to numerous payment methods and thanks to the Gaming Aggregator EGT Digital’s slot games are already at the disposal of the website’s visitors. The top-performing titles from Bell Link, Clover Chance, High Cash, Single Progressive Jackpot, as well as the multiplayer game xRide quickly gained popularity among BetHub’s customers.
“We are very glad with our collaboration with EGT Digital so far,” commented Kiril Naldzhiev, CEO at BetHub. “The platform has made the management of our business much easier, and the company’s gaming content has shown impressive results that have not only met but exceeded our expectations.”
Tsvetomira Drumeva, Head of Sales at EGT Digital, also gave a positive evaluation to the cooperation. She said: “Partnering with a prominent operator like BetHub is very valuable for us, as it gives us the opportunity to demonstrate the enormous potential of our developments and consolidate our status as a leader in the local market. I am confident that this is the beginning of a very successful collaboration that will bring a lot of positives to both companies and the players themselves.”
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