NetEnt plans for big global growth

Published by CasinoTopsOnline on March 10, 2016 in Industry News

NETENT LogoIt’s definitely no secret that NetEnt is one of Sweden’s biggest and most successful casino companies. The company creates online slots and a myriad of other casino games every month that rank as some of the most loved casino games available anywhere in the world. 

While already a large company that is known to punch above its weight, NetEnt has revealed that they plan to increase their share of the global market to 30 percent. One of the biggest pushes behind this decision is the possible expansion into the United States. However, there are those who question NetEnt’s growth considering the expansion into the US by any casino company at this stage is still an uncertain move.

A long history

Founded nearly 20 years ago, NetEnt was started by Pontus Lindwall, a man whose father built Sweden’s largest restaurant casino operator from the ground up. 

NetEnt has always had dealings with many different companies around the world and NetEnt has never feared taking chances. The firm recently signed contracts with casino operators that are based in Britain, Spain and the United States, where NetEnt will create a multitude of games for their customers. 

The last year has been good to NetEnt, with a rise in earnings of more than 50 percent and of course, this could be another reason that NetEnt plans to expand its reach.

NetEnt CEO, Per Erikkson, commented on the plans saying: "We still have big growth potential in Europe. We have approximately a 30 percent market share and that means 70 percent to take. Then, we have the US waiting for us and that is something we are looking forward to.”

Heading for America

The spike in mobile casino gaming, state lotteries and digital casino gaming on the whole is another large driving factor behind NetEnt’s growth. 

According to Reuters, the global expansion of the industry is at a rate of 10 percent annually. While some wonder whether or not NetEnt will be able to keep up their pace of rapid growth, the Swedish company has placed a lot of their hopes on the changing of laws in the US regarding online gambling.

Only a few states throughout the US have welcomed online gambling, but many of the laws are still firmly in place. H2 Gambling Capital studies industries such as online gambling and provide forecasts and predictions. H2 Gambling Capital has stated that they predict a market worth in gross wins of between $6 billion to $8 billion would take place overnight if laws regarding online gambling changed across the US. Unfortunately, it seems that this is not likely as changes will take place slowly from state to state.

"The U.S. is at the bottom of the shift to real money in iGaming and there is huge potential for it to grow if it is ever widely regulated," said the founder of H2, Simon Holliday.

Online gambling for all

Pontus Lindwall first saw that online gambling would succeed after graduating from the Royal Institute of Technology in Stockholm. Obviously Lindwall’s predictions were correct with the most popular form of gambling currently being the Live Casino offerings that NetEnt excels in creating.

Founder of NetEnt, Lindwall, says, "I did the pay tables behind the slot machines, calculating how it works under the hood. My father said if you want to have good games you have to make sure the player wins a lot. I knew how to do the math to make that happen."

Playtech and Evolution Gaming are some of NetEnt’s biggest rivals, but this has only spurned the company’s urge to grow. While the investment in new offices and products may knock NetEnt’s margin growth for 2016, Eriksson is still confident that company will succeed. 

NetEnt will have to be prepared for possible tax issues and concern that online casinos fuel gambling addiction. While these concerns are not new, there are many who consider online gambling and casinos to be extremely dangerous for those who are in danger of forming an addiction.

Eriksson finds the accusations amusing and commented on the outcry against online gambling, saying, "I feel it's a little bit like rock-n-roll in the 50s, when people said it will destroy everything, but it's here to stay."