Is a Targeted M&A Campaign Right for Your iGaming Business?

When planning your exit strategy in the dynamic iGaming industry, understanding whether a targeted marketing campaign aligns with your business size, goals, and market position can mean the difference between a mediocre sale and a transformative transaction.

Understanding Targeted Campaigns in iGaming M&A

The iGaming industry continues its remarkable growth trajectory, with the online gambling market valued at approximately $93.26 billion at the close of 2024 and projected to surpass $150 billion by 2029. As the sector matures and consolidates, understanding your exit options becomes increasingly critical for business owners looking to capitalize on this expansion.

When developing an exit strategy for your iGaming business, the size and scale of your operation should fundamentally inform your approach. For smaller online gambling operators and affiliates, discreet marketing through specialized portals and industry-specific platforms often yields the best results. However, for mid-sized iGaming businesses with established revenue streams, extending your reach through precisely targeted campaigns to corporate buyers and strategic acquirers typically unlocks significantly greater value.

A targeted M&A campaign in the iGaming sector involves direct outreach to potential corporate buyers—what many business brokers and M&A advisors call a “private auction” or “controlled auction” process. This methodical approach includes compiling a comprehensive list of prospective corporate acquirers, followed by strategic communication through multiple channels including personalized emails, formal letters, and direct phone conversations. The goal is simple: connect your iGaming business with buyers who can see its strategic value and are prepared to pay a premium for market share, technology, or customer acquisition.

It’s essential to recognize that selling your iGaming operation to a corporate buyer or competitor carries both compelling advantages and significant risks that require careful consideration. Confidentiality concerns, competitive intelligence, and market positioning all factor into this decision. Targeted campaigns are not a universal solution—they work exceptionally well in certain scenarios while proving ineffective or even counterproductive in others.

Strategic Advantages and Potential Risks

Advantages of Targeted Campaigns in iGaming M&A

The iGaming industry presents unique opportunities for targeted acquisition campaigns that don’t exist in many traditional sectors. Competitors and strategic buyers in online gambling already possess deep industry expertise—they understand regulatory frameworks, payment processing challenges, player acquisition costs, and the technology infrastructure required to operate successfully. This familiarity dramatically reduces due diligence time and transaction complexity.

Corporate buyers in the iGaming space often demonstrate sophisticated transaction knowledge. Unlike first-time individual buyers who may struggle with business valuation concepts or financing arrangements, established gambling operators have typically completed multiple acquisitions. They understand EBITDA multiples, earn-out structures, escrow arrangements, and regulatory approval processes. This experience generally leads to smoother transactions with fewer surprises during the due diligence phase.

Perhaps most significantly, corporate buyers and direct competitors in certain iGaming verticals may offer substantially higher valuations than individual buyers would consider. When a larger operator can immediately integrate your player database into their existing platform, leverage their superior payment processing rates, or eliminate duplicate overhead costs, they can afford to pay premium multiples that individual buyers simply cannot justify. Strategic value often commands strategic pricing.

Disadvantages and Risks to Consider

Confidentiality represents the single greatest concern when approaching competitors or corporate buyers in the iGaming industry. Revealing your intention to sell—along with detailed financial information, player data, traffic sources, and operational metrics—to a competitor carries inherent risk. Even with robust non-disclosure agreements in place, sensitive information about your business operations, affiliate relationships, and marketing strategies becomes exposed.

In certain iGaming niches, the probability of successfully completing a transaction with a competitor or corporate buyer may be minimal. Highly specialized markets, businesses dependent on proprietary relationships, or operations in jurisdictions with restrictive transfer regulations may find limited buyer interest despite significant outreach efforts. Understanding your market’s M&A dynamics before investing substantial time and resources into a targeted campaign is crucial.

Counterintuitively, corporate buyers sometimes offer less than individual buyers, particularly when they determine they can replicate your business model at lower cost than your asking price. If your iGaming operation relies heavily on paid traffic sources, uses white-label technology, or operates in markets where the acquirer already has strong presence, they may calculate that organic growth or building internally represents better value than acquisition.

Does Business Size Matter? Small vs. Mid-Sized iGaming Companies

Selling Small iGaming Businesses

Small online gambling businesses—typically those generating annual revenues under $5 million to $10 million or EBITDA under $1 million—are predominantly acquired by individual buyers. Industry data suggests that 95% to 99% of transactions in this size range involve individual purchasers rather than corporate acquirers. These buyers might be entrepreneurs looking to enter the iGaming industry, existing affiliates seeking to expand their portfolio, or individuals with gambling industry experience who want to own rather than operate for someone else.

However, targeted campaigns can prove valuable for a specific subset of smaller iGaming businesses. Online casinos with unique licensing in desirable jurisdictions, sports betting operations with proprietary trading algorithms, or affiliate networks with exclusive brand relationships may attract corporate interest despite their smaller size. The key differentiator is strategic value beyond raw financial metrics.

Selling Mid-Sized iGaming Operations

Targeted campaigns become almost universally effective for mid-market iGaming businesses generating EBITDA between $1 million and $5 million annually. At this scale, your operation has demonstrated product-market fit, built operational infrastructure, and achieved sufficient profitability to interest institutional buyers and larger gambling operators seeking inorganic growth.

The current iGaming M&A landscape shows continued strong activity in this segment. Strategic partnerships and acquisitions remain central to growth strategies for major operators seeking to access new markets, acquire innovative technology, or expand their product portfolios. Recent industry reports indicate that mergers and acquisitions in the gambling sector will continue accelerating through 2025, driven by market expansion in North America, regulatory developments across Europe and Latin America, and technological advancement in areas like mobile gaming and cryptocurrency integration.

Individual Buyers vs. Corporate Acquirers in iGaming

Marketing to Individual Buyers

Small iGaming business sales predominantly attract individual buyers who discover opportunities through targeted media channels. Specialized web portals focusing on online business sales, industry-specific forums, gambling industry publications, and affiliate marketing communities serve as efficient channels for reaching this audience. These platforms offer the advantage of pre-qualification—individuals browsing these channels have already expressed interest as potential buyers, dramatically improving the efficiency and cost-effectiveness of your marketing efforts.

Individual buyers typically look for turnkey operations they can manage without extensive technical expertise or large teams. They’re attracted to affiliate sites with established traffic, smaller casino operations with reliable software partnerships, or betting operations with proven player retention. The sale process with individual buyers often involves more education about the business model but can complete relatively quickly when financing is secured.

Approaching Corporate Buyers

Mid-sized and larger iGaming businesses naturally attract corporate buyers with different motivations and capabilities. Most corporate acquirers in the online gambling sector seek businesses generating at least $10 million in annual revenue, though exceptions exist in specific verticals. Sports betting operators, online poker networks, and casino groups may acquire smaller operations when they offer strategic advantages like market access, unique technology, or customer segments that complement existing operations.

The landscape of corporate buyers in iGaming has evolved significantly. Major publicly-traded gambling companies regularly acquire smaller operators to enter new markets or add complementary products. Private equity firms have become increasingly active in the sector, attracted by recurring revenue models and growth potential. Technology providers sometimes acquire operator clients to vertically integrate, while payment processors and affiliate networks pursue acquisitions to consolidate market position.

Types of Corporate Buyers in the Online Gambling Sector

Direct Competitors in Different Geographies

Geographic expansion represents one of the most common acquisition motivations in iGaming M&A. An established online casino operator in Europe might seek entry into newly-regulated U.S. states, Latin American markets, or emerging African jurisdictions. Rather than building brand recognition and obtaining necessary licenses from scratch—a process that can take years and cost millions—acquiring an existing operator with regulatory approval and local market knowledge offers a faster, lower-risk path to expansion.

These transactions often command premium valuations because the acquirer can leverage their existing technology platform, payment processing infrastructure, and marketing expertise while immediately accessing a new customer base. The strategic value extends beyond the target company’s current financials to include market position and growth potential.

Direct Competitors in the Same Geography

Consolidation within markets has accelerated across the iGaming industry. When organic growth slows or market maturity makes customer acquisition increasingly expensive, competitors frequently pursue acquisitions to gain market share. This proves particularly common in mature markets where the online gambling sector has reached saturation and competitors fight for every percentage point of market share.

For acquirers, buying a competitor often proves more cost-effective than attempting to steal their customers through advertising and promotions. Immediate access to an established player base, elimination of a competitor’s marketing spend, and operational synergies through consolidated technology and support infrastructure can justify significant premiums over standalone valuations.

Indirect Competitors and Adjacent Markets

Some of the most interesting iGaming M&A transactions involve indirect competitors seeking to enter new verticals or offer products to an existing customer base. A pure-play sports betting operator might acquire an online casino to offer their customers a broader entertainment experience. An established casino brand might purchase a poker network to add a new dimension to their offerings. Technology providers sometimes acquire operators to showcase their platform capabilities while generating revenue.

When approaching companies with this potential synergy, clearly demonstrating the strategic rationale and growth potential becomes crucial. These buyers need convincing that your customer base will adopt their products and that the combined entity creates more value than the sum of its parts.

Your Most Valuable Customers

Don’t overlook your most loyal customers as potential acquirers. In the iGaming industry, this might include affiliates who drive significant traffic to your platform, payment processors who handle large transaction volumes for your operation, or technology providers who supply critical infrastructure. These parties already understand your business model, trust your operation, and may see strategic value in vertical integration.

Long-standing business relationships often translate into smoother transactions with better terms. These acquirers require less due diligence, already understand your market position, and may move quickly when opportunities arise.

Strategic Suppliers and Partners

Businesses frequently acquire companies they have existing relationships with when vertical integration offers competitive advantages. A gaming software provider might acquire operators to ensure distribution for their products. Payment processing companies sometimes purchase gambling operations to secure transaction volume and gain insights into emerging payment trends. Data analytics firms might acquire operators to access player behavior data that improves their products.

These acquisitions enhance value chains and can prove particularly valuable for companies expanding into new markets or verticals where established relationships and operational knowledge provide competitive advantages.

Why Small Companies Rarely Acquire iGaming Businesses

Smaller iGaming companies typically focus on organic growth through gradual increases in marketing budgets and operational efficiency. Many operate in survival mode, focused on managing cash flow, responding to regulatory changes, or dealing with technical challenges. This operational reality leaves little bandwidth or financial capacity for the complex process of acquiring and integrating another business.

The reality is that attempting to sell your iGaming business to a smaller company often proves frustratingly inefficient and time-consuming. These potential buyers may express initial interest but lack the organizational structure, financing capability, or executive focus required to complete transactions. Unless a smaller company has explicitly communicated acquisition intent or demonstrated transaction capability through previous deals, they rarely convert from prospect to acquirer.

EBITDA: The Universal Language of iGaming Valuations

Earnings Before Interest, Taxes, Depreciation, and Amortization—EBITDA—serves as the primary metric that larger companies use to assess acquisition viability. Most corporate acquirers in the iGaming space seek businesses generating minimum annual EBITDA ranging from $1 million to $10 million or more. Understanding why this threshold exists is crucial for realistic expectations about buyer interest and valuation.

The transaction economics are straightforward: the professional effort required to complete a $1 million acquisition is nearly identical to completing a $25 million transaction. Legal fees, accounting costs, regulatory filing expenses, and advisory fees remain relatively consistent regardless of deal size. A $1 million acquisition might incur fees and expenses of $50,000 or more (equivalent to 5% of deal value), while a $25 million transaction might result in fees ranging from $150,000 to $300,000 (equivalent to just 0.6% to 1.2% of deal value).

This percentage-of-deal-size dynamic means that larger transactions offer substantially better economics for buyers. To achieve the same strategic impact as acquiring a single iGaming operation generating $25 million in annual cash flow, a company would need to complete 25 separate acquisitions of businesses generating $1 million each. The inefficiency becomes obvious—pursuing larger acquisitions simply makes more economic and strategic sense.

Current iGaming Valuation Multiples

While EBITDA multiples vary significantly based on factors like growth rate, market position, regulatory environment, and strategic value, understanding general ranges helps set realistic expectations. Technology companies and high-growth iGaming operations often command multiples of 10-20x EBITDA or higher, particularly when they offer proprietary technology, exclusive licenses, or dominant positions in attractive markets. More mature operations in competitive markets might see multiples in the 4-8x range.

The specific multiple your iGaming business can command depends on numerous factors including customer acquisition costs, player lifetime value, revenue diversification, regulatory risk, competitive moat, management team quality, and how your operation fits into a buyer’s strategic plans. Working with experienced iGaming M&A advisors familiar with recent transaction comparables in your specific vertical provides the most accurate valuation guidance.

Identifying Your Ideal Corporate Buyer

Demonstrated Acquisition History

The single best predictor of acquisition likelihood is past acquisition behavior. Focus your targeted campaign efforts on companies that have demonstrated acquisition appetite through previous transactions. Research potential buyers’ acquisition history over the past one to five years—the more deals they’ve completed recently, the more likely they are to consider another acquisition.

This pattern reflects organizational capability as much as strategic intent. Companies that regularly complete acquisitions have established processes, dedicated corporate development teams, access to acquisition financing, and executive alignment around inorganic growth. They can move quickly through due diligence, negotiate efficiently, and close transactions within reasonable timeframes.

Strong Financial Position

Target corporate buyers with robust financial standing—ideally companies generating at least $10 million in annual revenue and at least three times your company’s size. Most smaller operations lack both the financial resources and organizational bandwidth to invest millions in acquiring competitors. While exceptions exist, mid-sized and larger companies are the ones consistently growing through acquisitions.

Be particularly cautious when smaller companies express acquisition interest. Many smaller iGaming operators remain focused on immediate operational challenges rather than strategic growth through M&A. While occasional exceptions occur—particularly when smaller companies have secured growth funding specifically for acquisitions—the pattern holds that buyers should ideally generate at least $10 million in yearly revenue and be at least three times your company’s size. For example, if your iGaming operation generates $5 million annually, ideal buyers should have at least $15 million in yearly revenue.

The Targeted Campaign Process: Step by Step

A professionally executed targeted campaign in the iGaming industry follows a methodical, phased approach designed to maximize buyer interest while maintaining strict confidentiality. The process begins with close collaboration between the seller and the business broker or M&A advisor to develop a comprehensive list of potential corporate buyers and strategic acquirers.

Research and Compilation Phase

The seller provides an initial list of companies they believe might have acquisition interest—competitors they’ve encountered at industry events, strategic partners they’ve worked with, or companies they’ve identified through market research. The M&A advisor then conducts exhaustive additional research to expand this list, identifying potential buyers that may not be obvious but could see strategic value in the acquisition.

This research phase examines recent M&A activity in the iGaming sector, identifies companies expanding into new markets or verticals, researches private equity firms active in online gambling investments, and creates a comprehensive database with detailed contact information for key decision-makers at each prospective buyer organization.

Initial Outreach and Follow-Up

The advisor initiates contact with potential buyers using a carefully crafted Teaser Profile—a one to two-page document strategically designed to generate interest while protecting confidentiality. This teaser highlights key attributes like revenue range, EBITDA, market position, growth trajectory, and strategic advantages without revealing the company’s identity.

For prospects who express interest, the advisor requires execution of a comprehensive non-disclosure agreement (NDA) before providing additional information. For prospects who don’t respond to initial outreach, systematic follow-up through multiple communication channels—email, phone calls, LinkedIn messages—continues until clear interest or disinterest is established.

Information Sharing and Due Diligence

Once buyers sign the NDA, they receive access to the Confidential Information Memorandum (CIM)—a comprehensive document typically ranging from 20 to 50 pages that provides detailed insights into the business including complete financial statements, customer metrics, operational details, market analysis, growth opportunities, and management team information.

The advisor remains readily available throughout this phase to address buyer questions, provide additional documentation, arrange management meetings, and facilitate site visits or platform demonstrations as appropriate.

Letter of Intent Negotiation

When buyers express serious interest in moving forward, the process advances to Letter of Intent (LOI) negotiation. The LOI establishes key deal terms including purchase price, payment structure, closing conditions, exclusivity period, and timeline. The advisor leads these negotiations on behalf of the seller, leveraging competitive tension when multiple buyers are interested to maximize valuation and optimize terms.

Building Your Prospect List

Starting Your Buyer List

While professional M&A advisors will expand and refine any initial list you provide, starting with your own knowledge of the iGaming market proves valuable. Consider direct competitors you’ve competed against for players, indirect competitors offering complementary products, strategic partners like technology providers or payment processors, and companies you’ve observed making acquisitions in your vertical or adjacent markets.

Optimal List Size

The ideal prospect list size varies based on your iGaming business type, market position, and strategic value proposition. Generally, a comprehensive list should include at least 50 to 100 qualified prospects. However, when list quality is exceptionally high—particularly when prospects have previously expressed acquisition interest or actively pursued your business—smaller lists can prove sufficient.

Building a Comprehensive List

Start with direct competitors operating in your vertical but focused on different geographic markets. Expand to include indirect competitors in adjacent gambling verticals who might want access to your customer base. Consider companies in related industries that might see vertical integration opportunities. Industry directories, conference attendance lists, trade publications, and M&A databases all serve as valuable resources for identifying potential acquirers.

Different Negotiation Dynamics

Negotiating with competitors demands more rigorous preparation than selling to individual buyers. Have your legal counsel prepared to manage necessary revisions to non-disclosure agreements, letters of intent, and purchase agreements throughout the process. Expect more detailed due diligence requests, particularly around customer data, proprietary technology, and competitive positioning. Professional guidance from advisors experienced in iGaming M&A becomes especially valuable in these situations.

Alternative Strategy: Marketing Through Industry Publications

Rather than or in addition to direct outreach to corporate buyers, another approach involves promoting your iGaming business through carefully selected publications and media channels. This strategy works particularly well for highly specialized operations or when confidentiality concerns make direct competitor outreach problematic.

Relevant Publication Types

Trade publications specific to online gambling and iGaming provide targeted reach to industry professionals. Publications like iGaming Business, Sports Betting Community, Gambling Insider, and CalvinAyre reach executives, investors, and operators actively involved in the sector. Regional publications focusing on emerging markets like Latin America, Africa, or Asia can attract buyers seeking geographic expansion.

Digital channels including specialized blogs, forums, and online communities focused on iGaming, affiliate marketing, or online business sales also reach relevant audiences. Platforms like Flippa for digital assets, specialized iGaming broker sites, and affiliate marketing forums all serve as channels for connecting with potential buyers.

Cost Considerations

Publication expenses vary significantly depending on the industry sector and specific media channel. Rates may start as low as $50 for specialized online forums and climb to several thousand dollars for prominent placement in major industry publications with precise targeting capabilities. National publications with verified readership among decision-makers command premium rates but offer corresponding reach.

Combining Marketing Methods

For certain iGaming businesses, combining publication marketing with targeted direct outreach creates optimal results. This multi-channel approach maximizes visibility among potential buyers while maintaining flexibility in how you present your opportunity to the market.

Managing Expectations

Publication-based marketing works best for highly specialized iGaming operations with unique value propositions. Response rates depend heavily on the specific publication, its readership demographics, how compelling your business opportunity appears, and current market conditions. A month-by-month approach allows you to test different publications, measure response rates, and adjust your strategy based on results without over-committing resources to channels that aren’t producing qualified buyer interest.

Current iGaming M&A Landscape and Trends

Understanding broader market dynamics helps contextualize your exit timing and strategy. The iGaming industry is experiencing unprecedented growth and transformation driven by regulatory expansion, technological innovation, and changing consumer preferences.

Market Growth and Expansion

The global online gambling market continues expanding at remarkable rates. With market value approaching $100 billion and projected growth to exceed $150 billion by 2029, the sector offers compelling opportunities for investors and strategic acquirers. Growth is particularly strong in mobile gaming, which now represents the majority of online gambling activity, and emerging markets where regulatory frameworks are evolving to permit licensed operations.

Geographic expansion drives significant M&A activity. North America continues leading in both revenue generation and user adoption, particularly as more U.S. states legalize online sports betting and iGaming. States like California, Georgia, Minnesota, South Carolina, and Texas represent potential near-term opportunities as regulatory frameworks develop. Latin America, Africa, and parts of Asia offer emerging market opportunities where early entry can establish competitive advantages.

Technology and Innovation

Technological advancement serves as both a driver of organic growth and a catalyst for M&A activity. Companies seek acquisitions to access innovative technology rather than building internally. Areas seeing particular investment include artificial intelligence for personalization and problem gambling detection, cryptocurrency and blockchain integration for payments and transparency, mobile optimization and app development, and cybersecurity infrastructure to protect against increasingly sophisticated threats.

According to recent industry surveys, iGaming stakeholders rate the importance of AI and machine learning at 8.2 out of 10, reflecting the critical role these technologies play in competitive positioning. Acquisitions targeting product and process innovation have increased dramatically, with tech-focused deals seeing 90% year-over-year growth in early 2025.

Regulatory Evolution

Regulatory developments significantly impact M&A dynamics in the iGaming sector. Fragmented regulatory frameworks across different jurisdictions create complexity but also opportunity. Companies use acquisitions to gain access to desirable licenses, enter newly-regulated markets quickly, and build compliance expertise across multiple regulatory regimes.

Enhanced compliance requirements—including stricter financial checks, deposit limits, and player protection measures—favor larger, well-capitalized operators with robust compliance infrastructure. This dynamic drives consolidation as smaller operators struggle with compliance costs while larger companies seek acquisitions to achieve scale economies.

Investment Activity and Strategic Partnerships

Strategic partnerships and mergers remain central to growth strategies across the iGaming industry. Major operators pursue acquisitions to enter new markets and access innovative technology. Private equity firms have become increasingly active, attracted by recurring revenue models and growth potential in the sector. Technology providers pursue vertical integration through operator acquisitions while payment processors consolidate to gain market share.

Investment in earlier-stage companies continues growing, with pre-seed and seed funding rounds becoming more common for innovative iGaming startups. Mobile gaming, live casino, eSports betting, and blockchain gaming attract particular investment attention. Industry reports indicate that blockchain gaming alone accounted for approximately 40% of total iGaming investment deals in 2024.

Final Thoughts and Next Steps

Determining whether a targeted M&A campaign represents the right strategy for selling your iGaming business requires honest assessment of your company’s position, realistic valuation expectations, and clear understanding of market dynamics. For mid-sized operations generating at least $1 million in annual EBITDA, targeted campaigns to corporate buyers and strategic acquirers typically unlock maximum value. For smaller businesses, carefully consider whether strategic attributes like unique licensing, proprietary technology, or exclusive partnerships justify the additional effort and confidentiality risk involved in approaching corporate buyers.

The iGaming industry’s continued growth, regulatory expansion, and technological transformation create a favorable environment for M&A activity. Companies seeking geographic expansion, technology acquisition, or market consolidation represent genuine acquisition opportunities for well-positioned operators. However, success in selling your iGaming business requires more than a growing market—it demands professional preparation, realistic valuation based on comparable transactions, comprehensive buyer identification and qualification, strategic marketing that generates competitive tension, and experienced guidance through negotiation and closing.

If you’re uncertain whether a targeted campaign aligns with your situation, consulting with an M&A advisor specializing in iGaming transactions provides valuable perspective. These professionals can assess your business’s strategic value, estimate realistic valuation ranges based on recent comparable transactions, identify optimal buyer types for your specific situation, recommend timing for maximizing value, and develop a comprehensive exit strategy tailored to your goals.

The decision to sell your iGaming business represents one of the most significant financial and personal decisions you’ll make. Approaching this decision with clear information, realistic expectations, and professional guidance dramatically increases the probability of achieving an outcome that rewards the effort and risk you’ve invested in building your operation.

Ready to explore your options? Whether you’re actively preparing to sell or simply want to understand your business’s current market value, connecting with iGaming M&A specialists who understand the unique dynamics of online gambling transactions provides the foundation for making informed decisions about your exit strategy and timing.