On the 5th of September 2019, NetEntertainment announced that they have bought out the game studio Red Tiger Gaming for a cool £223 million. What does it mean for Red Tiger and NetEnt slot fans?
It’s another day, and another smaller gaming studio has been swallowed up by a bigger one.
We know what you’re thinking – is this the end of Red Tiger games? Will your favourite slots disappear, to be eaten up into the factory making machine that is NetEntertainment?
Well, maybe not. Let’s take a look at the deal, and what it means for you as a gambler.
It’s a love story where a boy meets a girl, and the boy realises the girl is getting lots of love and attention and he figures that if he puts a ring on her finger, that love and attention will start shining on the boy once again.
Red Tiger Gaming was established in 2014 and in a very short while have managed to make a huge splash on the scene, becoming one of the fastest growing online slot suppliers around.
In 5 years they’ve managed to integrate themselves in some of the biggest casinos online around and become a firm favourite with players around the world.
A difficult question to ask; though you can look at our list of Red Tiger Gaming online slots and get an idea. There are not many 2-star slot reviews in there, even fewer 1 star. The 100 K Drop slot is the only game we deemed unplayable, and then you have the God of Wealth review which is just about OK.
The started making waves by creating simple video slots that have one or two big bonus features. More importantly, they’ve always been open with players as to how much you can win in each slot.
Something NetEnt does it very best to hide.
They are not ashamed of the fact that you can only win 800x times your bet on Cinderella’s Ball because you can win 10,000 times your bet on the crazy Laser Fruit on mobile.
They are totally different games, for different players, and they make it easy for you to pick the game that suits your budget and playing style.
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What are the Red Tiger Games Must Drop Jackpots?
These are a very specific casino game jackpots that are local to the casino hosting Red Tiger Games. They are basically progressive jackpots shared over a network of casino slot games, one of which HAS to drop by a certain time each hour/day/week.
It makes them very interesting to play for jackpot hunters looking to catch a slightly bigger payday. After all, what would you rather play for: a 5,000 cash jackpot that you know is guaranteed to drop before 5pm today or a 10 million jackpot that breaks anytime in the next 2 to 3 months?
Sometimes, it pays to be practical rather than hopeful.
We doubt it. Look, we’re not sitting on the board of Directors at NetEnt, peeking behind the curtains, listening to every secret.
But this is an all-cash deal where NetEnt have paid out an initial enterprise value of GBP 200 million, with the possibility of paying out an additional GBP 23 million in 2022 once the merger is finalised.
Red Tiger is currently earning, before interest, taxes, depreciation and amortization (EBITDA), around GBP 18 million for the full year 2019.
You don’t pay 200 million to just dump a company like that. You pay that kind of cash because you expect this company to grow, to produce more earnings, and to bring back those 200 million (and hopefully more) in the next 5 years.
Sure. Maybe NetEnt has just paid to get rid of the competition, but that would be stupid when they can now make the competition their b**ch.
Currently, Red Tiger has 170 employees in their books in Malta, Isle of Man and Bulgaria.
To give you an idea of comparison in terms of size, NetEnt has openly stated that they have 1,000 employees over locations worldwide, from Stockholm to Malta.
Maybe those 170 employees get swallowed up, but there’s not way that NetEnt doesn’t have plenty of receptionists, graphic designers and marketing executives to probably overlap on the number of jobs.
That’s always an issue in Mergers and Aquisitions.
As we said, Red Tiger is the pretty girl who is getting all the attention, and NetEnt aren’t about to give her such a makeover that she’s unrecognizable.
Here’s what Red Tiger is getting from this:
“This is an exciting new stage of the Red Tiger story and we are delighted to become part of the NetEnt group. Accessing NetEnt’s unparalleled distribution network and geographic footprint will unlock new opportunities for Red Tiger and will further accelerate our growth.” Stated Gavin Hamilton, CEO of Red Tiger.
In other words, NetEnt is a big powerful studio with lots of casinos, and their games can now have a bigger audience worldwide.
NetEnt on the other hand:
“I am very pleased to welcome Red Tiger into the NetEnt Group. The acquisition combines two of the leading and most innovative companies in the online gaming industry. We look forward to working with Red Tiger’s fantastic team to enhance our combined global reach and to offer further value to operators and players.” Said Therese Hillman, Group CEO of NetEnt
In short, NetEnt games don’t have the impact and value they use to have, and they want Red Tiger’s new blood to inject a little innovation and that spark of creativity which has made them so popular in such a short time.
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Scientific Games owns Bally Tech, Williams, Barcrest and NextGen games, amongst others. But you still get an individual flavour for each of those different providers.
So yes, change is coming, but you won’t be losing Red Tiger mobile slots, you’ll simply find them at more online casinos – or at least their classic bests like Dragon’s Fire and the Lucky Wizard review.
Let’s hope NetEnt are smart enough to make sure that the people who make Red Tiger Gaming so distinctive will remain and keep that original flavour we’ve come to love.
In fact, if you want to experience the best of what both software casino providers have to offer, you couldn’t find a better gambling site than Casumo Casino who host both the daily jackpots AND used to be a NetEnt only casino – so they know the value of both software.
Here at Lucky Mobile Slots, we bring you all the best slot reviews from the best slot providers, and regardless of who makes them, we will always give you our honest unbiased opinion on what’s happening in casino games and the industry – as well as the best place to play.Start Playing at Casumo »
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