A month after giving the green light to Inspired Entertainment’s latest acquisition, the Competitions and Markets Authority (CMA) have explained their decision.
Back in June, Inspired signed a deal to acquire certain parts of Novomatic Gaming Technology Group’s (NGT) UK businesses. These included Astra Games, Bell Fruit Group, Gamestec Leisure, Harlequin Gaming and Playnation. Inspired also bought a majority interest in Innov8 Gaming.
The CMA, a non-ministerial department of the UK government, approved the deal in September, and this week released its full decision.
The decision, which runs to 34 pages, details the reasoning behind the CMA’s ruling that the deal does not adversely affect competition in the UK market.
According to the CMA, the combined share of the gambling markets as a result of the acquisitions would be less than 30%. They also state that Inspired would be unlikely to close down some of the gaming content providers as the losses would outweigh the gains of this approach:
“Accordingly, the CMA found that the merger does not give rise to a realistic prospect of a Substantial Lessening of Competition, as a result of vertical effects, in relation to the supply of gaming content in the UK.”
Inspired says that the acquisitions will help it to develop new products. It also says that it will be able to provide new systems and content to gambling operators.
The firm has grown significantly in recent months. They expanded their virtual sports reach by doing deals with Bet365 and BetStars at the end of 2018, and in September they struck a deal to use NFL branding and player likenesses in virtual sports games. They have also signed a deal with broadcaster SIS to supply content for that firm’s Live Betting Channels.