At the CMS Gambling Conference 2025, which took place on 6 June 2025 in London, Gambling Insider sat in as industry experts discussed the prevalence of M&A activity in the industry, and whether that is set to change.
The panel, titled ‘M&A – Will it Remain a Key Shaper of the Industry in 2025 and Beyond?’ was hosted by CMS Partner Rob Wilis. Joining him was Jefferies Managing Director James Liddy, MGM Resorts International Head of Interactive, International, James Brodie and NED and Corporate Strategy Advisor Sam Traversin.
It was proposed that M&A was once an immature and fragmented section of the industry, though this is no longer the case. Panellists agreed, adding that certain emerging markets, such as India and Japan, could be just as lucrative as the US. To lead by technology, however, particularly in these markets, requires M&A. Indeed, the question of whether operators should use their own technology stacks, buy ones in new markets or streamline innovation by acquiring smaller brands was a hot topic.
One panellist observed the change of M&A structure in today’s market. While it used to only involve large operators, now, every brand has a three to five year plan, where M&A is often involved. This, they said, reduces the pool of available M&A activity. Though, this does not mean exciting opportunities are still not available.
For an opportunity to be viable, it must deliver scalable growth – after all, what is the point in buying something just for it to flatline? Diversifying into different channels was pointed to as a key example of this, with Radar and Gambling.com’s moves into the affiliate and data sectors mentioned as just two examples in recent memory. For operators, making strategic acquisitions in the name of gaining an early mover advantage is also key.
Next, the question of bringing B2B and B2C operations together under one data stack, or keeping them separate, was raised.
The truth, one panellist said, is that tech simplifies things which are very complex. While such a combination can work, citing a recent example where a B2B platform provider offered product stack that advanced platforms for a fraction of the cost and risk.
However, there will always come a time when it is cheaper to make tech in-house rather than paying out, one panellist said. Providing it does not impact the customers, to make the tech yourself provides a competitive edge. Though, for most, the question comes down to deciding which parts of the operation require in-house control, and which need to be outsourced. Few operators have a unified tech stack, they said, but instead they have patchwork, all of which leads to a gradual build-up of tech debt.
Returning to the topic of early entry advantage, the panel discussed the grey market and its relation to M&A activity. The issue is a complex one; on one hand, a lack of regulatory diligence can have a long-term, cross-border effect on other M&A activity, yet to be an early starter in a market and catch players while they’re cheap, entering a pre-regulated market may be a necessity. In some instances, operators have had to leave grey markets to avoid the eyes of diligent regulators, with sweepstakes specifically noted as a market that, while holding liquidity from investors, has very few M&A buyers.
For an opportunity to be viable, it must deliver scalable growth – after all, what is the point in buying something just for it to flatline?
Other topics of conversation included the hesitance of private equity to enter the gaming market, due to some associations with industries like alcohol and firearms (particularly in the US), and whether these hesitations may lessen over time. One panellist pointed out that this change is already happening, citing Emirati investment into the casino industry in the Abu Dhabi and Dubai as on example.
Later, panellists were asked to name some of the recent gaming industry deals that inspired them. A range of examples were put to the floor, with one being the acquisitions by Lottomatica and Flutter in Italy, as well as DraftKings’ acquisition of SBTech.
However, not every tier-one operator relies on M&A to be successful. The panel went on to discuss bet365, the ‘anti M&A’ operator, and what makes it so special amongst its peers. While some were hesitant to name companies in their responses, it was clear that, in part, localisation was key to success. While bet365 seemingly has the tech stack for organic growth, this will not be the case for all operators, which would make M&A a necessity.
Another compared bet365 to PokerStars – a business that went from scratch to world-leading, guided by tech, experience, being ahead of the curve and being on top of regulation. But, they added, such a thing is unlikely to happen again. Indeed, it seems, that to succeed, technology must be at the forefront, as without it, innovation will fall behind.
