LeoVegas, now part of MGM, has recently acquired Push Gaming for a reported $150m. This acquisition is part of a larger content strategy. The founders of Push Gaming have worked hard for 12 years and this purchase signifies their success in the industry.
There has been a rapid increase in game output and new studio launches, resulting in less shelf space per studio and operator, as well as margin pressures. Funfair Games and Green Jade Games recently closed down. Therefore, it is important to analyze the numbers and understand the motives behind this acquisitive operator.
Push Gaming is not a small or cheap operation. With a UK base, license, and workforce, they are focused on in-house creation of high-quality titles. They currently have nearly 50 games live across 450 sites and distribute content via 47 aggregators.
Push Gaming performs better than the average studio in terms of game distribution, average position on page, and the number of games. Although not a major player, Push Gaming is a significant and successful studio group.
By acquiring Push Gaming, MGM can bring game content in-house, leading to exclusive content and lower third-party revenue shares. Other operators, such as Flutter and Entain, have made similar acquisitions in the past.
The table below compares MGM with four top operator groups that have their own in-house studios:
| Operator Group | In-House Game Content | Prime Real Estate on Site |
|---|---|---|
| MGM | 10-20% | Unknown |
| 888 Holdings | 11% | 30% |
The ability to dedicate a portion of content and prime positions on the page to their in-house studio will impact Push Gaming’s revenues and the cost of third-party content for MGM.
Overall, the acquisition of Push Gaming by LeoVegas (MGM) presents a significant opportunity for growth and increased revenue.
