NetEnt is Moving Forward Full Throttle, CEO Eriksson AssuresPublished March 12, 2016 by Lee R
The process may be gradual, but NetEnt is equipping itself for the long haul, as CEO Per Eriksson says in a Reuters interview.
Swedish online slot machine and roulette manufacturer NetEnt is moving boldly in pursuit of an ambitious goal of doubling its global market share to 30 percent.
A lot of these plans hedge on expansion into a fully regulated US market, where only three states are currently regulated: for now.
With high-powered casinos such as 777, SlotJoint, and 10Bet already on its roster, NetEnt recently signed new contracts with casino operators in the United States, Britain and Spain,. With online game production continuously expanding, NetEnt's results are an increase in earnings of over 50 percent last year, doubling share price to push market value into the $2 billion neighborhood.
In an interview with Reuter's Mia Shanley, NetEnt CEO Per Eriksson explained that with an approximate 30 percent market share in Europe, "we still have big growth potential in Europe” with the European market still with “70 percent to take” as well “the U.S. waiting for us.”
Elements of Growth
Eriksson identified three key elements in driving growth: mobile phone gaming, state lotteries and placement of digital game ports inside physical casinos to increase revenues.
Now NetEnt just needs more places to expand into. According to industry forecaster H2 Gambling Capital, a fully regulated US market would be worth $8 billion in revenues. NetEnt is one of a number of gambling companies who are betting that will happen.
After signing most of the major operators in New Jersey, NetEnt is banking that Pennsylvania will be next. Eriksson believes this will set off a domino affect amongst states on America's East Coast.
Internal challenges to growth include new offices and new product development costs. External challenges NetEnt is preparing for include higher taxes and the added responsibility of prevention of addiction via online technology.
Amid the inevitable opposition to online gambling, Eriksson maintains a sunny disposition:
"I feel it's a little bit like rock-n-roll in the 50s, when people said it will destroy everything," he said. "But it's here to stay."