Aristocrat CPO Points Benefits the Acquisition of NeoGames Will Bring

In mid-May, Aristocrat Leisure Limited unveiled details regarding an acquisition of the iLottery and iGaming solutions provider, NeoGames. The deal with a price tag of a staggering $1.2 billion ultimately seeks to provide a significant boost for Aristocrat, powering its expansion and presence within different verticals.

The Israeli-based online gambling, lottery and betting solutions provider, NeoGames, has a strong presence in more than 50 regulated gambling markets. Since its foundation, the company has been constantly growing its presence in strategic markets such as North America, Latin America, Europe, as well as Africa.

With more than 1,000 employees and gambling industry experience of more than 15 years, the company helped power the transformation of different operators around the globe. Only recently, NeoGames secured a license in Nevada. However, this wasn’t its debut for the US market, given that it has established ties with lotteries in a few other states.

Now, Matthew Primmer, Aristocrat’s chief product officer, recently spoke in front of the gambling regulator in Nevada, explaining the benefits of NeoGames’ acquisition. As announced by CDC Gaming, Primmer told the regulator on Wednesday that the billion-dollar acquisition will enable Aristocrat to enter the online gambling and iLottery vertical.

Primer explained: “It gives us global scale in the iGaming markets.” Additionally, he pointed out that by acquiring NeoGames, Aristocrat will be able to access iLottery, sports, as well as iGaming solutions, powering its growth. Although the $1.2 billion acquisition was announced last month, it is expected to take between a year or year and a half to be fully completed. As with other large-scale mergers, the acquisition is subject to approval from NeoGames shareholders, as well as relevant regulatory bodies.

Announcement about the Acquisition Comes after Strong 2023 Start

Aristocrat’s acquisition of NeoGames came shortly after the leading technology provider released its first quarter results. For the first quarter of 2023, NeoGames reported NPI revenue growth of $64.3 million. This result, when compared to the $22.4 million from Q1 in 2022 marked an increase of 187% year-over-year. At the time, the company confirmed that the result reflected “primarily the business combination with Aspire Global.”

For the first quarter of 2023, NeoGames’ iLottery revenues increased by 8.7% to $14.4 million. On the other hand, iGaming revenues for the period hit $35.1 million. Adjusted EBITDA in Q1 this year increased by 136.8% to $20.2 million.