Key Moments:
- Panelists at SiGMA Euro-Med 2025 have emphasized the importance of preparation, transparency, and early communication with regulators for successful mergers and acquisitions in the gaming industry.
- Challenges discussed include cross-border legal complexities, evolving regulations in markets like Finland, and increased scrutiny of private equity ownership structures.
- The necessity of collaboration between gaming companies and regulatory authorities has been highlighted as a way to streamline transactions and safeguard business interests.
Preparation and Planning: Setting the Foundation for Success
In the fast-evolving world of gaming, mergers and acquisitions are driving industry transformation. Yet, the path to closing a deal can be fraught with regulatory challenges across different markets. At the SiGMA Euro-Med 2025 event, experts on the Regulatory Challenges in Mergers & Acquisitions panel, supported by WH Partners, discussed actionable steps for overcoming these hurdles.
Panelists stressed that thorough preparation is crucial before embarking on any M&A process. According to Alistair Facciol, keeping all corporate documents and agreements up-to-date ensures that stakeholders can respond quickly to regulatory inquiries. Stephanie Mifsud raised the importance of organizing a meticulous data room and engaging with local counsel to navigate the specific nuances of each jurisdiction.
Regulatory Collaboration: Building Stronger Relationships
A key topic was the necessity of collaborating with regulators instead of treating them as adversaries. The discussion emphasized the value of open communication, with panelists advising that companies involve regulatory bodies early to streamline the approval process.
Zachary Sciberras, representing the MGA, outlined Malta’s notification requirements, including a three-day window to report qualifying shareholding changes and a 30-day period to submit relevant documentation. Sciberras clarified that the regulator’s primary aim is to protect the industry, and a cooperative, transparent approach from licensees leads to smoother transactions.
Managing Multi-Jurisdictional Complexities
The movement of gaming companies across borders adds another layer of complexity. Markets like Finland, with pending regulatory reforms, introduce uncertainty in deal execution. Minna Ripatti acknowledged the challenge of predicting how new regulations will impact multi-jurisdictional transactions, underscoring the need for agility and continual engagement with legal counsel in each region.
Panelists also discussed the growing influence of private equity and venture capital, noting that regulators increasingly scrutinize ownership and demand complete transparency regarding beneficial owners. This process can delay approvals if fund structures are opaque.
Beyond Licensing: Competition and Operational Challenges
Acquisitions in the gaming industry often face examination from competition authorities, particularly when deals might alter market dynamics. Economic analysis becomes necessary to assess the impact of potential consolidation. In addition, operational challenges, such as the integration of platforms and onboarding new personnel, require robust project management and cross-departmental teamwork to ensure a smooth transition after the deal closes.
Conclusion: The Role of Collaboration and Communication
Panelists agreed that close cooperation with regulators and a well-organized approach to due diligence enable gaming companies to tackle legal, competitive, and operational risks more effectively. Through rigorous preparation and proactive communication, stakeholders can overcome regulatory barriers and complete successful mergers and acquisitions.
To further explore these themes and gather additional expert viewpoints, industry participants are encouraged to attend SiGMA Central Europe in Rome this November 03-06, where evolving trends and opportunities in the gaming sector will be in focus.
- Author
Daniel Williams
