Gaming Giants Send Shockwaves Across the Industry with Ambitious Move

Global gaming giants Allwyn recently decided to sell its physical casino assets in several key markets – the move sent shockwaves across one of the most lucrative industries in the world.

The company has decided to shake up its business model by investing heavily in digital gaming. To achieve their aims, they have sold off assets in several regions, including Australia.

Given their established standing in the global sector, that decision could have a massive impact on how the rest of the sector handles their business.

It could be a huge turning point for the global betting industry, especially in highly regulated markets such as Australia and the United States.

Ditching Brick-and-Mortar Gambling

Allwyn sold ten casinos in Germany’s Lower Saxony region and a 42 percent stake in the Reef Hotel Casino in Cairns, Australia, pocketing around €105 million in the process.

The ink is not dry on the transactions in Australia, with shareholders yet to give the green light. It is also subject to regulatory approvals, but the deals in Germany have been ratified.

Allwyn has decided to ditch low-growth, high-cost environments and double down on its digital ambitions.

The casinos in Germany generated €126.4m in revenue last year. But with operational costs going through the roof and strict regulations tightening the noose, physical casinos have lost their appeal.

Allwyn recorded a net income of only €2.4m from its casino stake in Australia. That is further proof that the returns no longer justify the investment.

Land-based casinos were once the crown jewels of gambling conglomerates. However, digital platforms are now considered the holy grail of the industry.

Allwyn is looking forward to a future in scalable, technology-enabled operations that transcends national boundaries and regulatory barriers.

After selling their physical assets, the company can now channel those funds into development and research as they look to penetrate some of the most promising digital gambling markets.

Allwyn Set to Benefit from Digital Gaming Opportunities

Allwyn’s decision to sell its casino stake in Australia opens the door for a more expansive digital play.

Australia already has a highly active online betting sector with some big industry names firmly at the top of the game. But customers are always on the hunt for companies that offer value for money.

Allwyn is already familiar with the Australian market, which gives them a useful head start. Its inside knowledge could be valuable in launching a new platform or acquiring local brands.

Some of the brands featured on comparison site http://australianbettingsites.net.au/ may be open to operating under the Allwyn umbrella.

And with its increasing expertise in lottery-based and sports betting products, there is scope for Allwyn to win over Australian players by offering something completely different to what they are used to.

The experts at Australianbettingsites.net.au are adept at identifying quality on betting platforms and Allwyn’s expertise would undoubtedly be well received in the market.

The United States could also present a window of opportunity. The country’s regulatory landscape is fragmented, but the growth potential of the market makes it an irresistible target for any operator with ambitious plans.

Betting on Innovation

Cutting ties with brick-and-mortar establishments is a headline move, but what is more interesting is where the money is going.

Allwyn has wasted no time investing in its online platforms and digital product offerings. Digital gaming contributed 39% of the company’s gross gaming revenue this year, up 15% year-on-year. That is down to impressive performance

s from the United Kingdom National Lottery and Eurojackpot.

But recent acquisitions such as Instant Win Gaming (IWG) and Novibet, as well as a minority stake in Next Lotto in Germany, have also generated significant revenue.

Allwyn bought a 70% stake in IWG, a cutting-edge developer of digital lottery content, so online players can expect more engaging and interactive gaming experiences.

As partial owners of Novibet, an emerging sports betting and online gaming site, Allwyn can expand their offerings from lotteries to the iGaming sector, which is an untapped goldmine.

Next Lotto also bolsters Allwyn’s reputation in European markets, especially in digital-first demographics. Allwyn also acquired the remaining 15.51% stake in Stoiximan.

The company already held a controlling stake in the Greek online betting powerhouse, but it didn't stop them from completing a full acquisition in a €191.6m deal.

Stoiximan’s gross gaming revenue went up by 27% last year. It has now become a key part of Allwyn’s segment in Greece and Cyprus and a major growth engine for its broader digital ambitions.