Sega Sammy to continue online gaming services amid Yokohama’s exit on IR

Sega Sammy Holdings Inc. is still keen to explore opportunities in the global online gaming services industry, even after pulling out of the land-based casino segment’s Yokohama integrated resort (IR) project.

The company first expressed interest in investing around JPY120.0 billion (US$845.3 million) in an IR with a casino in Yokohama, Japan, as part of a potential collaboration that included Genting Singapore Ltd. But in the autumn of 2021, Yokohama publicly withdrew from the competition.

In November of the same year, Sega Sammy Holdings announced that it would purchase GAN Ltd for about US$107.6 million. GAN provides business-to-business software services in the US but also provides business-to-consumer online gaming services in Europe and South America. The deal’s completion is slated for the third quarter of the fiscal year, which concludes in March 2025.

A representative for Sega Sammy Holdings said that the company is still looking at business opportunities in the international online gaming sector, particularly in the well-regulated North American gaming market. The speaker highlighted the potential of the US iGaming industry, pointing out that there may be a significant opportunity for growth if one joins before universal legalization.

Sega Sammy Holdings expects the number of existing operators in the online gambling market to increase along with the influx of new operators as more states legalize it. The company claims that GAN’s complete technical solution is very competitive in that it enables operators to establish an online gambling presence quickly.

Sega Sammy Holdings views the acquisition of GAN as an opportunity to combine market-leading technology from GAN with its gaming content and casino equipment division, Sega Sammy Creation Inc. GAN will be acquired by Sega Sammy Creation through a special-purpose company. By cross-selling GAN’s business-to-business portfolio to its land-based casino patrons, Sega Sammy Creation hopes to expand its clientele.

Sega Sammy Holdings would be able to supply intellectual property suitable for gaming applications needed by land-based operators by using GAN’s B2C portfolio, creating a synergistic impact. This enhances the intellectual property of the Sega Sammy group and the gaming hardware and content creation abilities of Sega Sammy Creation.

Original story by: GGRAsia