Danske Spil acquires local gaming operator
Ex-monopoly operator tightens its grip on the Danish market by acquiring 60% of Aalborg-based developer and operator
Denmark’s former gambling monopoly Danske Spil has expanded its footprint in the country’s egaming market after acquiring 60% of Aalborg-based developer and operator Cego.
Danske Spil has purchased a majority of common shares in the firm in order to gain access to its casino games portfolio and player databases from Cego’s online sites, including komogvind.dk and spilnu.dk.
According to Danske Spil, the deal will “consolidate and strengthen” its leading position in Denmark, with the former monopoly currently estimated to hold approximately 60% of the total betting and online casino market.
The acquisition will also see the operator gain access to players more faimilar with Cego’s social gaming-themed titles, an area in which Danske Spil chief executive H.C. Madsen said the firm was “not very well represented”.
Under the terms of the deal, Cego will continue to operate independently under management from its current owners and Mads Peter Veiby, chairman of the board at Cego, said the firm was looking to exploit synergies between the two companies, including at its offices in Aalborg.
“Aalborg is a good place to continue developing since with the IT University there is ample opportunity to attract skilled workers,” Madsen said.
Morten Ronde, CEO of the Danish Online Gambling Association (DOGA), spoke to eGaming Review of his concern regarding Danske Spil’s hold on the market in February this year, with a number of operators in the country now said to be considering handing back licences due to a lack of competitiveness.