Italian gaming operator Gamenet Group SpA has reportedly announced a deal that is to see it pay out approximately $310 million in order to purchase all of the capital in domestic rival GoldBet.
Combined entity to be ‘clear leader’ in Italy:
According to a report from iGamingRadio.com, Guglielmo Angelozzi, Chief Executive Officer for Rome-headquartered Gamenet Group SpA, stated that the acquisition is set to make his firm a ’clear leader’ in the traditional Italian betting market and allow it to extend its presence into a number of other verticals.
GoldBet is reportedly responsible for around 1,000 bookmaking shops spread across Italy and last year generated approximate earnings of $46.6 million. Paola Bausano, the firm’s Chief Executive Officer, purportedly explained that the deal will see the combined entity’s estate top 1,700 and allow it to ‘exploit the synergies and know-how of both companies’.
Chief operator in ‘more traditional’ areas:
iGamingRadio.com cited Paul Leyland from gambling consultancy Regulus Partners as detailing that the enlarged business is set to control around 21% of the Italian retail sportsbetting market alongside some 33% of its virtual bookmaking sector and will now be able to transform into a ‘clear leader in more traditional betting products and channels’.
Expert advises caution:
However, Leyland reportedly cautioned that GoldBet and Gamenet Group SpA currently only hold 3.8% and 3.1% shares respectively in Italy’s online sportsbetting market with this combined stake making its ‘a credible number four’ behind rivals Bet365, SKS365 and GVC Holdings. He purportedly declared that it was his view that this will position the pooled business ‘stuck in the mid-tier of a stubbornly fragmented Italian online market with neither side bringing anything to break out of this’.
Online powering Italian market’s growth:
London-based Leyland reportedly divulged that Italy’s gaming sector is currently ‘being powered first and foremost by online’ but that this still represents a relatively undersized proportion of total revenues at only around 29%.
Leyland reportedly stated…
“Combinations with very high machine exposure and relatively limited domestic online capabilities still remain challenged, in our view. Conversely, it is telling that all of the top four online businesses in Italy are online-led and none has material machine exposure.”