Company Looks to Capitalize on Acquisitions to Enhance Digital Footprint
Aristocrat Leisure is doubling down on its digital future, unveiling an ambitious strategy to boost its iGaming operations in the wake of recent acquisitions. The gaming giant’s latest moves highlight a growing focus on expanding its digital offerings and strengthening its market presence, especially in the U.S. and Europe.
In April 2024, Aristocrat successfully completed the acquisition of NeoGames, a major step in the company’s strategy to tap into the iLottery and broader online gaming markets. The deal was widely seen as a game-changer for Aristocrat, positioning it to offer enhanced visibility and access through its Anaxi online gaming division.
Adrian Bailey, Managing Director at Aristocrat, commented on the strategic importance of the deal during the recent Global Gaming Expo, calling it “a match made in heaven.” This acquisition is expected to fast-track Aristocrat’s entry into new markets, but Bailey acknowledged that integrating 100 operators would still take a significant amount of time, perhaps stretching up to five years or more.
Aristocrat Eyes Growth in the U.S. and Europe
With the NeoGames acquisition under its belt, Aristocrat’s ambitions to grow in the iGaming sector have never been more evident. Bailey sees this acquisition as a key to unlocking the next phase of growth, especially in Europe where Aristocrat’s presence has been bolstered by the earlier purchase of Roxor, a B2B supplier of online real-money gaming. However, the challenge of replicating the same level of success in the U.S. remains a tough hurdle.
Currently, iGaming is only legalized in seven states across the U.S.: New Jersey, Delaware, Pennsylvania, West Virginia, Michigan, Connecticut, and Rhode Island. This limited market, though growing, still presents challenges in terms of scaling operations across the country. Despite these limitations, Aristocrat has managed to carve out a significant slice of the market. For example, in New Jersey, where the company has only been operating for a short time, it has already gained an estimated market share of 3-5%.
Bailey sees this as a promising sign, noting that Aristocrat has a solid three to five years ahead of them to expand content into new markets before needing to worry about short-term revenue growth. This sets Aristocrat apart from its competitors, as it enjoys the luxury of focusing on long-term growth without the pressure of immediate results.
The Key to Success: Content Delivery and Synergy
At the core of Aristocrat’s iGaming strategy is its massive game library, which includes the ever-popular Buffalo series. Bailey believes that Aristocrat’s experience in land-based casinos will serve as a strong foundation for the company’s iGaming efforts. The challenge, however, lies in the delivery of content, especially with the increasing demand for new games. Bailey estimates that Aristocrat must produce at least 50 new games per year to keep up with the market’s expectations.
Aristocrat is keen on leveraging the synergy between its various business segments to accelerate content creation. The company is now working closely with its land-based division to develop new digital content while also partnering with studios to scale production. Bailey is confident that Aristocrat will meet the demand, especially as all parts of the business start operating in sync.
The company’s goal is to ensure that its content delivery reaches operators quickly and efficiently. Aristocrat is focused on expanding its partnerships with digital studios and using its comprehensive portfolio to scale content delivery, which is critical to staying competitive in the rapidly growing iGaming market.
A Long-Term Play for Aristocrat’s iGaming Strategy
The integration of NeoGames into Aristocrat’s wider strategy demonstrates the company’s determination to build a comprehensive, forward-thinking approach to iGaming. Aristocrat’s solid footing in Europe and growing presence in the U.S. are set to pave the way for even more ambitious goals. Bailey’s outlook suggests that Aristocrat is well-positioned to take advantage of the next wave of iGaming growth, despite the challenges of content delivery and market limitations in the U.S.
While Aristocrat’s plans for growth are clear, the coming years will be crucial in determining whether the company can fully capitalize on its acquisitions and strategic shifts. As the digital gaming market continues to evolve, Aristocrat’s ability to adapt, produce high-quality content, and build strong operator relationships will likely dictate its success.
