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Japan-based gaming firm Sega Sammy may be the next big name in American iGaming.
At the end of this month, the company announced it entered a $140.69 million agreement to buy Stakelogic, a prominent iGaming content provider in Europe and the United States. The move signals another step in Sega Sammy’s apparent move to position itself at the leading edge of US online casinos.
Perhaps just as important as the acquisition is the following revelation about US iGaming growth included in a Sega Sammy news release:
“While the US iGaming market is still limited to seven states, there are ongoing discussions around legalizing iGaming in additional states. If we can enter the US iGaming market before broad legalization, it could provide a promising opportunity to grow our presence in the US iGaming market.”
Key takeaways
- Sega Sammy is buying Stakelogic for over $140 million.
- The acquisition brings Sega Sammy online casino licenses in three states.
- The company revealed there are discussions in several states about legalizing online casinos.
What Sega Sammy’s acquisition means for online casinos
With its plan to purchase Stakelogic in place, Sega Sammy has positioned itself to enter the U.S. iGaming market with force.
Stakelogic has online casino supplier licenses in PA, MI and Rhode Island, which means the company can legally provide online casino games to operators in those three states. Equally as important as the licenses is which states those licenses are in.
Michigan and Pennsylvania comprise more than half of the US iGaming market revenue. The latest iGaming revenue data from June reveals that online casinos generated $622.8 million in revenue and more than $378 million of that came from Michigan and Pennsylvania:
| State | June online casino revenue |
|---|---|
| Pennsylvania | $195.6 million |
| New Jersey | $186.8 million |
| Michigan | $183.2 million |
| Connecticut | $33.7 million |
| West Virginia | $18.5 million |
| Delaware | $5 million |
| Total | $622.8 million |
The Stakelogic acquisition adds to Sega Sammy’s US momentum. This past November, the company initiated its acquisition of GAN Limited, a business-to-business software provider for casino operators.
Stakelogic provides a wide variety of online casino games
As part of the acquisition, Sega Sammy gets Stakelogic’s portfolio of content for US online casinos, which includes three types of games:
- Online slots: Traditional slot machine games that dominate online casino gaming
- Live table games: Includes Roulette, blackjack, baccarat and live game shows
- Hybrid games: Games that activate a game-show style experience when bonuses or jackpots are triggered
Sega Sammy believes more states will legalize online casinos
One of the most interesting takeaways from Sega Sammy’s press release about its acquisition is the company’s belief that more online casino states are on the way. The mystery, of course, is which states are in discussion; does Sega Sammy have inside information?
One candidate for legalizing online casinos, in our estimation, is Texas. While the state’s conservative faction has long been opposed to any gambling outside of tribal gaming, there seems to be significant movement at the legislative and regional levels to introduce online casinos.
Last month, commerce and advocacy group, the North Texas Commission announced it will launch a study on the impact of online casinos for the North Texas region, which includes the massive Dallas/Fort Worth metroplex.
Additionally, several figureheads in Texas have shown support for expanding gambling beyond tribal gaming. Gov. Gregg Abbott said in 2022 he was open to expanded gaming.
And, earlier this year, outspoken former owner of the Dallas Mavericks, Mark Cuban, pitched a destination casino in Dallas.
Support aside, there’s one good reason Texas could be the next state to legalize online casinos: revenue. PlayUSA estimates that, in June, Texas online casinos could’ve earned $374.2 million. In just two months, Texas online casinos could earn more than the entire US market in a single month.
