NetEnt: How They Entered the US Marketplace
Nothing in the casino gaming space is happening without the game’s producers like NetEnt. In fact, you can look at them as the backbone of the whole industry. They provide the content to keep gamblers happy. They are responsible for keeping players glued to games like Gems of Adoria. This is by making them more exciting and more addictive. One of these companies which sits at the top table is NetEnt. They have been responsible for driving a revolutionary appeal to entice and keep gamblers of all types happy.
History of Huge Growth
Right now it’s fair to say that the Swedish company is one of, if not the leading games developer in the world. Go to any top of the line casino, and you’ll find their games enjoying a prominent position. The business began in 1996. It has since grown to become a market leader, knocking out innovative games that have cemented its reputation as the go-to player for all your casino gaming needs. Their jackpot slots are played by thousands of gamblers each and every day, and they account for over 3/4 of the whole annual revenue. Some of the most popular offerings are Gonzo’s Quest and Starburst. To say that there are lots of industry awards in their showcase would be an understatement.
But their path to the success they enjoy today has been far from smooth. Success wasn’t overnight and it certainly didn’t come easy. By carefully running the business they were able to dominate the European market, their entry into the US wasn’t a walk in the park. Though once in, the move did prove incredibly profitable, as their 2019/20 results show. In fact, as of now, it’s the US market that’s the driving force in the company’s continual growth.
NetEnt: The Initial Problems
Gambling in the US was running relatively smoothly for many years. But all that came to a grinding halt in 2006. This is when the Unlawful Internet Gambling Enforcement Act was introduced. Overnight it threw a huge spanner in the works and made it neigh-on impossible for the best online casinos with jackpots and gaming developers to continue to operate in the country. If you happen to be an offshore casino, then it was curtains for your business. As a result of this, many companies started to focus their attention away from the US market place and concentrate it all in Europe. As a direct result, the European market place prospered and grew.
Anti-Gambling Laws in the US
But over the pond, the gambling bill passed by George W. Bush was wreaking havoc across states. One of the main problems was that it took away the possibility of states gaining gambling taxes. Everyone and their dog knows that online and offline gambling can result in huge taxable profits. US states are always on the lookout for new ways to raise money. But without raising personal income tax. So it followed that allowing casinos to flourish was a no-brainer. The problem was that the act making gambling more difficult was a political one. And we all know how slowly politics moves. Several states tried to wrestle the right to have casinos and casino games back on the books but failed for a number of reasons. Everyone had to wait eight years, until 2013, until New Jersey was the first state to open its doors to gambling once again.
The First Step Back
With plenty of new laws being written to allow state gambling to start up once again, many companies saw an opportunity to get into the market and become first movers. NetEnt was quick to join the party, entering the US market in 2015, when they signed a contract with the UK game operator, Game Account Network Plc, otherwise known as GAN. But this was only for simulated games. These don’t have any real cash involved in the playing of these games. A player could buy virtual currency/money which was then used in the gameplay. Of course, this form of playing didn’t make much financial sense. But at least it was an opening in the US market.
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In some ways, the fact that NetEnt continued with this loss leader was proof that they were playing a long game in terms of securing paying business in the US. The idea being that they could use this platform as a showcase for products that they would be able to release once the US legal framework changed.
NetEnt: Foot in the Door
Via their link to GAN, NetEnt was able to get their jackpot games onto online casinos that were under the umbrella of land-based casinos. As remote gambling was taking off all over the world, NetEnt would be able to leverage these games to expand their customer base. And boy, did it grow! By being able to demonstrate their products to gambling enthusiasts, they were able to lasso them into the new world of online gaming, something that many land-based players were blissfully unaware of. For them, it was a revelation, with the ease of use, the extra bonuses, and a huge variety of new gaming options.
So, with hindsight, we can see that entering the US market this way was a huge risk. But it all proved successful as state laws against gambling started to fall. As a result of being early to the table, NetEnt was able to stamp their brand ahead of much of the competition. When regulated online casinos finally got the get-go in the US, they were ready and poised to make the most of this new opportunity.
Conquering the Market
In late 2015, the US marketplace for collaborations with online casinos really started to take off. Because NetEnt was able to hit the road running, one of their first sign-ups was with the US company, GameSy US, which ran a number of popular online casinos. Everyone in the industry was fixated on the New Jersey gambling scene. This allowed NetEnt to cast their nets wider and they began wooing large resorts around the US. Thanks to this approach they struck a deal with Caesars Interactive Entertainment. This huge casino company took the whole of NetEnt’s catalog on board. This meant that for the first time, a US player could play another US player and make their way through the whole selection of games in NetEnt’s roster. These games include the fantastic Divine Fortune Megaways, a must-play slot.
Joining PokerStars
The following year, NetEnt took another mighty leap by signing a deal with Amaya. This was the company that owned the brand, “PokerStars”, probably the most famous brand name in the jackpot poker universe. This one signing bumped NetEnt up to the big league. With this their digital products were able to increase their reach to all US gambles and more players jumped on board. As a direct result, the company, in one swoop, increased its US market position by tenfold.
NetEnt: The Future
Well, it must be said that the future for NetEnt in the US and Canadian market places is looking bright. More and more states open up to the idea that gambling is a great way of raising taxes. NetEnt is ready to jump in. Soon states saw the tax revenues being generated by casinos just across their state lines. Then they quickly come round to the idea that gambling isn’t so bad after all. And the more states approve of gambling, then the more players NetEnt will have under its belt. Thanks to savvy business acumen and great jackpots, NetEnt enjoys a good name. At the same time offers great products with all the security and care of a market leader. NetEnt is certainly here to stay.
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