UK CMA worried on reduction of competition in iGaming market

UK CMA worried on reduction of competition in iGaming market
22nd Sep, 2020
Simon Colmenares Author Profile Photo Simon Colmenares

Evolution Gaming just acquired NetEnt which prompted an investigation by the UK’s Competition and Markets Authority (CMA), over concerts that the situation could lead to a diminution in competition for the environment regarding iGaming across the region.

Evolution threw around an statement when they bid for the casino games developer back in June where they said that they were aiming to become “the world leader in the online gaming industry

This resulted in the CMA to step in and analyse if all this will result in a “substantial lessening of competition” in the UK market.

Evolution said it had hoped to complete the acquisition by November this year, however, this was prior to the CMA’s decision to launch the investigation.

This move from the CMA comes obviously from the concerns raised by the Gambling Commission about breaches of consumer law which also raised concerns for online gambling in general.

Nisha Arora, CMA Senior Director for Consumer Enforcement said: “gambling inevitably involves risk, but it shouldn’t be a con. We’re worried players are losing out because gambling sites are making it too difficult for them to understand the terms on which they’re playing, and may not be giving them a fair deal. We are now investigating whether firms are breaking the law.”

She continued: “Around 5.5 million Britons gamble online and they must be treated fairly. We’ve heard worrying complaints suggesting people may be lured into signing up for promotions with little chance of winning because of unfair and complex conditions. We’re now working closely with the Gambling Commission to examine this more closely.”

Evolution Gaming is aiming at the top of the industry

Evolution Gaming has been considered one of the most advanced and reputable software developers since the moment it was launched into the iGaming industry.

The game maker showed amazing creativity, uniqueness, professionalism and dedication in all aspects so the players as well as the operators felt drawn to Evolution Gaming in a short period of times.

Despite the fact that Evolution Gaming has been at the top of the iGaming industry since its beginnings, the executives in charge of this giant game developer have always expressed their intention of becoming the number one company in the whole industry.

Apparently, it seems that all the work and dedication has paid off and the high sums of money generated by Evolution Gaming have given the chance to acquire NetEnt.

The acquisition is set to turn Evolution Gaming into the most important game maker in the industry without any doubts.

Once achieved, it is impossible to measure the great power and influence that Evolution Gaming will have in the industry across the whole globe.

The new acquisition may not be that good for the iGaming industry

For some players, this new acquisition of NetEnt is great news, since they consider the move to fast-forward the industry’s development.

Sadly, for the experts, the move could actually do the exact opposite and turn the iGaming industry into a monopoly where Evolution Gaming has no competitor and therefore, has the power to do what it wants within it.

Having a monopoly within an industry that is yet to reach its peak is definitely not beneficial for anyone involved in it.

Ultimately, it could stunt the industry’s growth and all the companies behind Evolution Gaming would be forced to stop operating since the expenses would be too much for all of them.

The investigation by the UK CMA has not delivered results at the moment, but the whole industry is hoping for positive results in the near future.

It would be more than just disappointing to find out that such a fast-growing industry like iGaming would be going through this type of issue at this critical time.

The sudden news of NetEnt being on sale

NetEnt was officially launched in 1996. Ever since then, this Swedish-based game maker has led the gambling industry’s development by creating top-notch games for land-based casinos and online casinos as well.

When thinking of the gambling industry, you definitely have to think of NetEnt at some point. Thus, it is more than surprising to find out that such a big and renowned company like NetEnt would be looking for a buyer.

The company has a great value and generates lots of money on a yearly basis, so most of the iGaming community was not expected this type of news.

The reasons behind this decision have not been announced, but it seems that the NetEnt executives are looking to focus their energy and time on other areas.

Needless to say, the disappearance of NetEnt from the industry would be devastating for its growth and development in the near future.

22nd Sep, 2020
Simon Colmenares