Inspired Entertainment Buys Novomatic Subsidiary to Bolster FOBT Network

Inspired Entertainment is set to increase its network of live betting terminals after acquiring the UK arm of Novomatic.

Inspired Entertainment Novomatic deal

Inspired Entertainment is adding to its collection of FOBTs thanks to a £94 million deal with Novomatic. (Image: YouTube/awilko0)

Adding to its current selection of fixed odds betting terminals (FOBTs), Inspired Entertainment will add Category B3, C and D machines to its mix.

The £94 million acquisition will see the gaming provider “increase the size, scale and scope” of its business according to executive chairman Lorne Weil.

Time is Right to Expand

What’s interesting about the deal is that it follows a major overhaul of the UK’s live gaming sector. After sustained pressure from anti-gambling advocates, the government reduced the maximum bet on FOBTs to £2 per round.

That move has seen operators scrambling to offset their losses. As the likes of 888 have diversified the online portfolios, Paddy Power and Betfred have tried to introduce FOBT alternatives.

While Inspired Entertainment already has a selection of FOBTs, it will use Novomatic’s products to offer something different. As noted by Weil, the “complementary” but “non-overlapping” machines will make it a leading provider in the live gaming space.

Under the definitions laid out by the UK Gambling Commission (UKGC), Category B3, C and D machines can be used in the following locations:

Casinos

Bingo halls

Motorway service stations

Arcades

Racetracks with pool betting

Private members clubs

Travelling fairs

Unlike FOBTs (Category B2), those listed as B3, C or D offer lower stakes and payouts. This dynamic keeps them in line with the government’s responsible gambling push.

Shared Resources to Help Inspired Entertainment

In addition to adding more gaming machines, Inspired Entertainment hopes to develop new innovations.

Combining its own talents with those of Novomatic, the company believes the deal could generate £10 million in the immediate future.

Money-making and innovations aside, the acquisition will help Inspired Entertainment in the new socially responsible climate.

With FOBT revenue and, therefore, demand set to drop, a more rounded catalogue of live gaming terminals should keep it competitive within the UK.

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