Packing a Punch in the Gaming Market
Largest Land-Based Casino Game Machine Provider to Emerge After IGT-Everi Merger in North America
Apollo Global Management's proposed acquisition of IGT Gaming and Everi Holdings Inc. is about to shake up the North American gaming industry, building the area's largest provider of land-based slots and gaming machines.
Set to control over 77,000 casino gambling machine installations across North America, the new powerhouse will be bigger than any competitor, surpassing current leader Light & Wonder's 54,397.
Upon merging, the entities anticipate combined 2024 revenues of $2.6bn with $1.1bn in Adjusted EBITDA, solidifying their position as the industry's juggernaut.
Redefining Identity and Expanding Horizons
Announced in a July 2024 press release, this $6.3 billion deal will see IGT spin off its slot business to Everi, focusing on its lottery technology business. With a new name and ticker post-merger, the enterprise will be privately owned, setting sights on meaningful diversification and growth through strategic cross-selling opportunities.
Revenue will be well-balanced between gaming activities, equipment sales, systems and software, and FinTech and digital platforms, opening doors for overseas expansion through IGT's international networks.
Competing in Innovative Markets
Aristocrat and Light & Wonder currently lead in digital and iGaming territories, but Apollo's merger offers differentiated value with Everi's FinTech segment. This boasts the potential for success in long-term, cashless products and player interaction solutions in casino environments, making a strong play in emerging markets.
The acquisitions will conclude in the third quarter of this year, cementing Apollo's new company as the go-to provider for land-based gaming devices in North America.
The Inside Scoop
This strategic move by Apollo consolidates two leading gaming suppliers into a single entity under the IGT brand, headquartered in Las Vegas. The combined company expects to generate significant financial might, enabling substantial investment in innovation, technology, and integration for a comprehensive suite of products and services.
Operators can expect increased competition as the combined IGT-Everi entity redefines the competitive landscape. Meanwhile, the deal promises greater product choices and potential for improved services, although concerns about reduced supplier diversity and pricing power remain.
The acquisition encapsulates a broader trend of private equity-driven consolidation in the gaming supplier sector. Final regulatory steps are expected in late June 2025 before the entity can rebrand under the IGT name.
After concluding the merger, the new entity, rebranded under the IGT name, will dominate the North American gaming market with its expansive offerings beyond traditional gaming activities. This privately-owned company will focus not only on land-based gaming devices but also on FinTech and digital platforms, potentially opening doors for international expansion.
In the realm of emerging markets, the merged Apollo company stands to challenge competitors like Aristocrat and Light & Wonder, thanks to Everi's FinTech segment, offering promising solutions for cashless products and enhanced player interactions in casino environments. This strategic move is poised to shake up the gaming industry, paving the way for increased competition alongside potential benefits for operators and players.
