[toc]NetEnt’s second quarter results showed sharply rising revenues, an increasing customer base, and a market position that anticipates U.S. growth as more states legalize online gaming.
Since its entry into the New Jersey online gambling market in the Fall of 2015, NetEnt has signed up a substantial proportion of the online casinos to its online gambling products.
The slots games can offer huge payouts. Two weeks ago a Swedish player won €2,971,469.49 ($3,271,379.91) playing the Mega Fortune slot. In May, a player in London picked up £2.9 million ($3.8 million) playing the Mega Fortune Dreams slot, having bet just £20.
New Jersey payouts have not quite reached those dizzy heights, but it only looks like a question of time before someone makes a big dent in the casinos’ revenues.
NetEnt New Jersey Casino partners
NetEnt entered the New Jersey online gaming scene in September last year after signing an agreement with U.K. company GAN. GAN had begun offering its simulated gaming product in partnership with the Borgata, and the deal with NetEnt extended the games available on the GAN platform.
Less than a month later, NetEnt signed its first real money gaming agreement with the Borgata. Björn Krantz, managing director of NetEnt Americas LLC said:
“I am delighted to be live with Borgata online casino in New Jersey, and it marks a fantastic milestone achievement for NetEnt. I am confident that our games will offer Borgata’s player community the very best gaming experience.”
The first milestone rapidly receded into the distance as NetEnt followed up with real money gaming deals with bwin.party’s online casino and a deal with Gamesys to get their games onto the TropicanaCasino.com and VirginCasino.com.
In April, 2016 the Tropicana became the latest New Jersey online casino to sign up for NetEnt games.
The U.S. is a near term growth driver for NetEnt
NetEnt’s success in New Jersey has given it ambitions for the rest of the U.S. as the market opens up. The financial report identified the short term possibilities of markets opening in Pennsylvania and Michigan, both of which could legalize online casino games this year.
Björn Krantz said he was optimistic about U.S. expansion and not worried about competition in an interview in June with YogoNet:
“As the online gaming segment matures, and additional states push forward with regulation, we will see an increased appetite from various providers to enter the market.
However, as market entry barriers are high in the region, there will be a natural filtering out of companies that do not have the organizational bandwidth, operational maturity and financial strength to fully comply with regulatory requirements.”
Krantz added that there was still space for growth in the New Jersey market:
“We see great continued opportunity for growth in New Jersey as the market is still developing. NetEnt has been driving the online casino market forward for over 20 years, and we know very well what the online casino player expects and how we must innovate to achieve the very best player experience.
We provide our partners with a level of content uniqueness that helps them to differentiate their market operations.”
It looks like New Jersey players will get plenty of new slots games and big jackpots as NetEnt continues to develop in the state.