Greentube, the Novomatic digital gaming and entertainment division, announced in October that it had acquired US development studio Present Creative to further its growth strategy in North America. In an interview with CasinoBeats, CFO and CGO of Greentube Michael Bauer spoke to us about this exciting new partnership and what we can expect from the studios following the deal.
CasinoBeats: This is Greentube’s first acquisition of a US studio; what was it about Present Creative as a company that first caught your attention?
Michael Bauer: There were various reasons that we were interested in acquiring Present Creative. First and foremost, we think they have a lot of creative potential, especially when it comes to the US market.
In addition to this, they have already worked in social gaming, lottery and slots in various markets around the world and we have confidence in their ability to cover a broad spectrum when it comes to slot design, which was really interesting for us. From a team perspective, we could see from the outset that they are really good people and we are delighted to be working with them.
CB: Why did you decide to go down the acquisition route to further expand in the US?
MB: Making an acquisition was essential for us as we wanted to scale fast, and we didn’t want to lose too much time in doing so. Further expansion in the US makes it necessary for us to build up our resources there.
We cannot solely operate or supply the US market from Europe. We’ve been able to do so for a while, but it puts a lot of strain on people here due to time zone differences. Culturally, it is much better to be on the ground in the US as well.
CB: How will this acquisition change the games portfolio offering for North America? What can we expect going forward?
MB: Two things can be expected as a result of this acquisition. First of all, we will be adding iLottery content to our ever-growing portfolio of games. This is an important addition as we have not offered scratchcards or any other instant games before. We also know Present Creative is strong in this area and has existing customers which will help broaden our offering very quickly.
Secondly, we expect to produce slot games with Present Creative which will be dedicated solely to the US market. We are already seeing good traction from our existing games in the States, but we want to be able to offer them something that is better tailored to these players.
Ultimately, we plan on building upon this acquisition; this is just the first step for us. We will increase the existing teams by bringing in new people in areas such as certification, technical account management and integration.
We will also be using Present Creative as a hub for the LatAm market. As the vast majority of the team is based in Mexico, we will utilise that to expand further southwards. Elsewhere, we will be keeping a close eye on the Canadian market.
CB: Will the Present Creative content also become part of Greentube’s European offering?
MB: Yes. In terms of lottery content, we have already had several customers show interest in our offering. Additionally, we will be offering this product to all of our existing European lottery partners.
When it comes to slots content, we believe there will be a portion of the European market that enjoys these US-style slots. Of course, we will use these games globally and try them out in all markets. We are under no illusion that they will work in every market, but we are more than happy to offer them to anyone who wishes to utilise them.