Global gaming giant, Novomatic, extends its footprint with the acquisition of Viking Casinos in France.
Rewritten Article:
Gaming titan Novomatic is casting its eyes on global dominance, and its next move is to grab the French-owned Viking Casinos SAS for an undisclosed sum. This acquisition, subject to regulatory approval, will add 11 land-based casinos to Novomatic's empire.
Based in one of France's top casino companies, Viking Casinos embarked on its journey in 1998, skyrocketing to fame in the following years. France's land-based casino sector has come under heavy scrutiny lately, with certain lawmakers advocating for the legalization of online casinos. This move worries property owners, who fear it could lead to a substantial decrease in business and potential closures.
Novomatic's Executive Board Member, Stefan Krenn, commented on the planned acquisition, stating, "It sets the stage for continued growth in France." Viking Casinos SAS CEO, Luc Le Borgne, echoed Krenn's sentiments, believing that the merger will fuel the company's efficiency through Novomatic's resources and expertise.
Austria-born Novomatic currently boasts a vast portfolio stretching across more than 2,000 facilities in approximately 50 countries. They manufacture slot machines and other gambling-related tech.
France, as of now, hasn't legalized online casinos but is considering it. While the French Gambling Act of 2010 regulates some forms of online gambling, online casino games remain largely unlawful. The possibility of legalizing online casinos is under deliberation, and potential benefits like estimated tax gains of €1 billion annually are being weighed against regulatory complexities and political resistance.
Although legalization seems distant, a realistic outlook suggests some form of partial legalization or experiment might emerge after the 2027 presidential elections, striking a balance between economic pressures and social safeguards.
In 2024, France's gambling market reached €14 billion, making it the fourth largest in Europe. Online betting, particularly sports betting, has experienced a noticeable surge, accounting for approximately 18.6% of the total market. However, online casino games face impediments to full legalization and regulation.
The French government continues to crack down on unauthorized online gambling sites, highlighting the demand for legal options. The acquisition of Viking Casinos SAS by Novomatic strengthens Novomatic's foothold in the French land-based casino market. If France legalizes online casinos, it could challenge land-based operators like Viking Casinos SAS by moving gambling activity online.
Conversely, Novomatic's ownership of Viking Casinos SAS could pave the way for cross-channel strategies, combining land-based casino presence with online platforms if legalized, thereby shielding against market cannibalization and expanding overall reach.
Currently, land-based casinos continue to thrive in France, but incremental online market developments could bring about gradual online competition over the medium term. In the meantime, Viking Casinos SAS will likely maintain its dominance in the physical casino sector.
Novomatic's acquisition of Viking Casinos SAS could expand its repertoire to include casino-games, particularly in the land-based domain. If France does legalize online casinos, this merger might position Novomatic to offer both casino-and-gambling experiences, both onsite and online.
