Korean Owned Netmarble Purchase Hong Kong Casino Franchise
Netmarble have acquired a Hong Kong-based casino app SpinX, in an effort to boost their global outreach and control over the Asian marketplace. The new acquisition is one of many purchases Netmarble made this year, gaining assets in China and India. SpinX sold their online casino games for $2.2 billion, making it one of the most valuable procurements of the last few years. Aiming to conquer the continent, Netmarble is looking to capitalize on a surge in gambling activity during the pandemic.
Netmarble have acquired SpinX and their entire casino games catalogue in a deal worth $2.2 billion. With a new range of online assets, the South Korean giant will push to gain ground outside of its home nation, jumping on an opportunity to expand the business globally. ©GregMontani/Pixabay
Based in Seoul, Netmarble is one of the oldest casino franchises in Korea. Founded in 2000 by Bang Jun-hyuk, they were one of the first gambling firms in Asia to utilize technology and expand into mobile applications and domain procurements. Ever since their early days, their value has skyrocketed thanks to numerous changes in legislation, granting users freedom of choice, therefore, bringing more customers to their online platform.
SpinX has also played a significant role in the commercialization of online gambling in Asia. While under Chinese jurisdiction, they campaigned for the liberation of casino firms, relinquishing the government’s control of the industry, and adopting a free-market model. Netmarble view SpinX as a crucial asset due to the size of their gaming catalogue, many of which are developed in house and with an impressive amount of variation.
SpinX’s CEO, Sean Su, expressed his delight and gratitude towards Netmarble for their cooperation in their agreement, praising their fluidity and efficient use of negotiations to complete the acquisition cleanly. Sean Su previously worked as a technology consultant in Taiwan and received contracted work from the Chinese government, effectively working alongside their civil service. SpinX appointed him as CEO in 2016, and since then, the company has reached new heights, impressing the founding members greatly.
It’s no secret that Asia’s gambling market is a massive opportunity for international firms to expand their repertoires. Netmarble is already one of the continents largest casino companies; acquiring SpinX is an important deal to increase their yearly revenue stream. Since the pandemic, online gambling activity has increased across the world. In response to newer trends, sportsbooks are investing more in their online presence rather than land-based casinos.
Netmarble Capitalize on Market Trends
SpinX has one of the most diverse gaming catalogues in all of Asia, virtual slot machines, casino environments and virtual horse racing to name a few. They’ve perfectly encapsulated a bustling casino environment for an online audience. As immersive as their games are, they’re also renowned for their ethical advertising as well as the use of psychologists in research and development. For years they’ve emphasized the importance of problem gambling, and their product reflects their desire to combat a growing stigma associated with the industry.
Through their own research and prowess, Netmarble realized the importance of CSR and ethical accountability towards their user base. Savvy customers are aware of the technological exploitations some firms employ to exploit vulnerable users. Like food and health, the gambling industry will require an attitude adjustment better to protect their customers’ wellbeing and financial situations. South Korea dominates the mobile gaming sector, and Netmarble must adapt to increase its domestic and international market reach.
The Future of the Asian Online Gambling Market
A sway in market trends has lead analysts to predict a staggering growth in the Asian online gambling market over the next decade. During global lockdowns, consumers grew used to mobile gaming, and since the reopening of casinos across the world, statistics show that user activity is unlikely to decline. An increase in mergers and acquisitions is highly likely as the globalization of the gambling industry continues.
For example, Tencent, a Chinese company, announced its interest in purchasing Sumo, a British software and video game developer based in London. Sumo has previously worked on numerous PlayStation exclusive titles, including the coveted ‘Little Big Planet’ series. Tencent wants to expand into online gambling applications and believe a partnership between the two could benefit them significantly.
Strategy Analytics, an industry research firm based in the US, while also having offices in China, published a report including a number of important predictions. Based on current market trends, they expect the global gambling market to grow to $255 billion by 2026. Monthly users continue to grow, and by 2026, on average, countries in Asia can expect a 20% increase in their current customer base.
