Evolution Acquires Slot Developer Nolimit City in $357M Deal

Posted on: June 22, 2022, 09:03h. 

Last updated on: June 22, 2022, 09:56h.

Erik Gibbs Read More
Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

Evolution is continuing to evolve into a larger, more diverse gaming company. Its latest move to facilitate that growth is the acquisition of Nolimit City, an online slot developer.

Evolution Gaming
Evolution participating in a gaming expo in 2019 when it was still Evolution Gaming. The company continues to expand its global operations, acquiring slot supplier Nolimit City. (Image: Casino Insider)

The purchase, which Evolution hopes to complete before the end of the third quarter of this year, shows the value in online gaming. There are plenty of other substantiating examples. But Evolution will pay a €200 million (US$211.76 million) up front for Nolimit.

It will then pay another €140 million (US$148.23 million) if it clears certain performance benchmarks in each of the next three years. The purchase price comes from cash Evolution has in existing reserves.

Evolution Rolls the Dice on Slots

Nolimit will become the fourth brand in Evolution’s slots portfolio. The business made its first foray into the sector in 2020 when it purchased NetEnt. Evolution then acquired Big Time Gaming last year, which is best known for its Megaways gaming solution.

Evolution, which recently entered the Canadian market, was attracted to Nolimit City’s profit margins, just like it was to Big Time Gaming. For this year, the business anticipates generating revenue of €30 million (US$31.78 million). Additionally, its EBITDA (earnings before interest, tax, depreciation and amortization) will be approximately €23 million (US$24.36 million).

The Evolution board stated that the acquisition was in keeping with Evolution’s strategy to be the leading online casino game provider worldwide. Jens von Bahr, Evolution’s chairman, said that he was “impressed” by how the supplier has created a new style of slots games.

Evolution has reported that it is experiencing slow earnings from its slots portfolio in its most recent financial report. However, its core live-dealer products saw a 44.3% increase in revenue during the first quarter of the year.

At the same time, the RNG (random number generator) division saw a 19.3% increase. However, this growth was almost all organic, thanks to the purchase of Big Time Gaming. RNG revenue only grew by 1.8% on a like-for-like basis.

Not Everyone Finds The Golden Goose

Mergers and acquisitions in the gaming industry are a common occurrence as the global market matures. However, not all companies in the space find long-term success.

Several online gaming operators had to throw in the towel recently. Among these is BetBull, the online iGaming and sports betting operator that had support from Wynn Resorts.

In addition, MaxEnt, a Malta-licensed operator, announced today that it will close all its casino brands, as well as its eSports betting website. This includes the sites Slotty Vegas and Go Slotty, as well as Vulcan Bets and GGBET.com. All three will cease operations as of July 31.

GGBet.com shares branding with GG.Bet, a separate site MaxEnt doesn’t own. However, it has not announced whether it will close.

All of MaxEnt’s sites inform customers that they must withdraw funds no later than July 31. The sites have already turned off new deposits.

The websites tell customers to request a withdrawal as soon as possible if there is a pending balance of real funds in their accounts. If they cannot collect their funds, the platform’s customer service team will need to intervene.

MaxEnt received a license from the UK Gambling Commission in November 2014 that the regulator revoked in January 2020. At the time, the Commission raised concerns about MaxEnt’s finances, including its owner and source of funds.

The company tried to appeal the decision before later giving up. However, it then relied on its Malta Gaming Authority license, which it will now surrender.