The Acquisition of Online Casinos



Owning an own online Casino is big business and whether you acquire a ready-made site or build a brand new one it is a major investment. Cherry AB, a Swedish gambling operator acquired Malta-based company Almor Holding Limited effective July 1, 2015. Almor is one of the leading online casino business that cater to the German market. Cherry initially purchased 71% of Almor’s shares for €4.6m of which 50% was cash and the remaining 50% in Cherry shares. Over the course of the next four years Cherry will have the option to acquire the rest of the shares. In October Cherry acquired an additional 4 percent in shares giving the company 79% ownership.

Alexander Knopf, director of Almor said: “We are delighted to be joining Cherry, whom we believe to be the ideal partner for Almor to continue its remarkable growth. Cherry’s international reach, multiple licenses, flexible technology platform and in-house game development will be highly complementary to our local market knowledge, established brands and customer base.”

Since Almor’s initial launch in 2011, their main brands are comprised of Sunmaker, Kingplayer and Sunnyplayer with a strong focus on German speaking markets. The extensive portfolio includes a sports book and a selection of online casino games.

To their accomplishment these brands have a large customer base with over 55,000 active customers within the first 5 months of 2015.  The number of registered players in the database was around 355,000 members. They are considered one of largest operators of the innovative Merkur Slots created by software developer Edict eGaming in business since 1998.

Fredrik Burvall, President and CEO of Cherry, commented: “Cherry has developed a strategic position in Germany, where we already hold all currently available online casino licenses, including in Schleswig Holstein. With this acquisition, Cherry immediately becomes a major online casino player in this major European market. In the short-term this enables Cherry to grow significantly and to strengthen the Online Gaming business division. The deal gives Cherry a larger and more significant presence in continental Europe, contributing positively to both our margins and our growth prospects.”

Another major acquisition by 32Red, a Gibraltar based online gambling operator after making business deal to purchase Roxy Palace for £8.4m was announced this year. Proprietors Applied Logics Ltd and Hyperlink Media Ltd of Roxy Palace have a solid registered customer list of nearly 230K with a strong player market in the UK.

32 Red pays £2m in cash up front and issues 10 million new shares at 64p each. 3 2Red CEO Ed Ware said the acquisition “fits well with our regulated markets growth strategy.” Ware said his firm has “known and respected [Roxy Palace’s] business for many years and share a number of common values.” Both 32Red and Roxy Palace are based on the Microgaming platform, which Ware believes “will aid in making for a smooth integration.”

Opening a Brand New Online Casino

If starting from scratch and building your own online Casino sounds like a better idea there are a few very crucial steps to consider. Just like the engine determines the performance of your automobile, so does the software that is chosen to run your site. The Casino software is essentially the brains and brawn of the operation.

Choose between two suppliers: a software that develops games in-house and platforms which offers more flexibility and lower fees or a B2B – business-to-business model package consisting of games from multiple suppliers that don’t require multiple contracts however have higher fees. Some fees are paid on a monthly basis while other providers send source code files once purchased, allowing data privacy and full access to the casino.

The leading top software suppliers include: Microgaming, Net Entertainment and Playtech who are among the largest suppliers in the industry. Besides a minimum fee of €10,000 a month there is generally a 15% from royalties cut. Other popular software includes: IGT, WMS, Aristocrat and Real Time Gaming. The software will also be instrumental in helping you run the entire operation from account management, payment processors, fraud and marketing campaigns.

Getting established and taking on the task of opening up an online Casino might sound easy enough but it can also fail miserably. The market is currently saturated with gambling portals and the competition is fierce. Some of the best tips are the simplest and apply to any business venture to succeed: provide excellent customer support who is courteous, prompt and knowledgeable, fast payouts and lucrative Bonuses and promotions that give your site the winning edge.



Image credit: CC by Nick Ares

About the author: AlleyVoice

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