Shaping The Future: How M&A Is Transforming IGaming, Sports Betting, And Gambling Software Industries

Muted M&A levels in the past three years, driven by higher interest rates that led to increased borrowing costs and lower corporate valuations, resulted in financial sponsors delaying exits, which has resulted in pent-up supply. In addition to private equity and venture capital’s $2.6 trillion in uncommitted capital as of July 2024,1 there is an ever-increasing inventory of aging private-equity owned assets that need to be monetized. Following economic headwinds over the past two years—including high inflation, tight financing conditions, and low business confidence—global dealmaking conditions are improving.

Companies such as Flutter Entertainment and Entain have been at the forefront, pursuing strategic acquisitions to bolster their online presence and enhance their technological capabilities. The landscape of mergers and acquisitions (M&A) in the iGaming industry has undergone significant transformations over the past few decades, driven by technological advancements, regulatory changes, and shifting consumer preferences. Initially characterized by smaller, strategic deals aimed at consolidating market positions or acquiring niche technologies, the M&A activity in iGaming has evolved into a dynamic and complex arena. Online sports betting’s digital landscape is increasingly vulnerable to sophisticated fraud schemes. Operators have reported a surge in fraud attempts, outpacing the industry’s overall growth.

These adjustments ensure consistency in the analysis and allow for better trend analysis across the reported timeframes. This has been supplemented by additional information from S&P Capital IQ and our independent research. Certain adjustments have been made to the source information to align with PwC’s industry mapping. Tariffs, regulation, geopolitical shocks and macroeconomic shifts are all creating conditions in which the unexpected is now expected. This includes sticking to investment principles, avoiding overreach on valuations and ensuring post-deal integration capabilities are in place before signing.

Consolidation in the iGaming industry

It’s more important than ever that you understand where your business fits into the wider story and where opportunities may appear. There’s an element of catch-up and I think that’s going to continue,” said Carter, former CEO of platform provider SBTech when it merged with DraftKings in January 2020. Mergers and acquisitions are due for a comeback in 2024 after a slowdown in 2023, according to Morgan Stanley Investment Banking. Takeover, on the other hand, is an acquisition where the target company does not consent. The purchasing company must acquire a controlling stake in the company to force the sale.

This evolution is supported by advancements in technology, particularly artificial intelligence (AI), which has become acornerstone of modern retention strategies. A notable example is the acquisition of William Hill’s European operations by 888 Holdings in 2021 for £2.2 billion. This strategic move not only bolstered 888 Holdings’ presence in Europe but also expanded its portfolio of products, enabling the company to cater to a broader audience.

Moreover, M&A is facilitating the consolidation of the industry, allowing companies to achieve economies of scale and increase their negotiating power with suppliers and regulators. As the industry becomes more competitive, consolidation helps companies optimize resources, enhance market share, and improve profitability. This trend is leading to the emergence of a few dominant players with the resources and capabilities to lead the industry into the future. For these reasons, some analysts forecast a steady rise in M&A activity in the coming year. Digital transformation as a result of AI adoption is one of the largest mergers and acquisitions trends for 2025. Within the financial landscape, AI has its share of benefits and challenges as companies figure out roobet the best way to harness its potential for growth.

In 2021, the sports industry showed considerable M&A activity, with 284 transactions amounting to USD 62.35 billion. This demonstrates the sector’s continuous appeal to investors and its steady alignment with digital transformation trends and global sports franchise investments. Between the first half of 2024 and the first half of 2025, total global deal values increased from $1.3tn to $1.5tn, marking a 15% year-over-year increase. The flow of deals involving EMEA or Asia Pacific acquirers transacting in the Americas is growing, while dealmakers based in the Americas are increasingly focusing on domestic or intra-regional transactions. As the industry continues to evolve, the role of M&A will remain crucial in driving growth and innovation.

Contact an expert: M&A Industry Trends & Outlook 2025

In recent years, the iGaming sector has witnessed a significant surge in mergers and acquisitions (M&A), driven by a combination of regulatory changes, technological advancements, and market consolidation efforts. This vibrant landscape is marked by several notable trends and major deals that are reshaping the industry. One of the most significant future prospects of M&A in the gambling industry is the creation of vertically integrated companies.

Companies are engaging in strategic mergers to expand geographically, diversify products, and acquire cutting-edge technologies, such as mobile gaming and data analytics. The convergence with other entertainment sectors and the rise of sports betting, particularly in the US, have further fueled M&A activity. Despite challenges like integrating corporate cultures and regulatory scrutiny, these consolidations are expected to continue, fostering innovation, market growth, and enhanced customer experiences. One of the key trends shaping the M&A landscape in these sectors is the quest for technological innovation.

U.S. Stock Market Outlook: A Time for Balance

• Silver Lake’s acquisition of the outstanding shares of Endeavor Group Holdings was a huge sale, one that immediately skyrocketed to the top of the list.
• The $700 million upfront payment, coupled with performance-based earn-outs, could push the deal’s total value to $1.95 billion.
• Industries such as energy, infrastructure and tech will be looking for synergies in new markets.
• Compared to the previous year, 2022 observed a decline in volume of deals, by 7%, and a minor increase in value of deals by 51%.
• As the industry becomes more fragmented with numerous players vying for market share, consolidation through M&A becomes an attractive strategy to achieve economies of scale, optimize resources, and enhance profitability.

I’ve observed that this shift complicates market dynamics, where staying competitive requires significant investment in innovation and customer engagement. Market shifts in the betting industry are profoundly impacting operators and consumers. Rather than reacting to short-term volatility, boards and investment committees should focus on long-term structural trends, such as technological disruption, climate change, demographic shifts, supply chain resilience or others. Building a clear business case around sector and subsector themes helps lay the groundwork for decisive action when opportunities arise. Even if the market timing is difficult, articulating why specific assets, sectors or themes will matter over the next five to ten years can align stakeholders early and ensure readiness when valuation and other conditions converge.

Furthermore, the technological evolution within the iGaming sector plays a crucial role in shaping mergers and acquisitions. Companies are not just buying out competitors; they are acquiring new technologies, platforms, and innovative startups to stay ahead in a rapidly evolving digital landscape. This trend towards embracing digital transformation underscores the importance of technology in driving future growth and enhancing user experiences. In the iGaming sector, recent trends and major deals have highlighted the importance of adaptability and strategic foresight.