Blackstone underlines the appeal of regulated markets

Haide Hong, managing director in Blackstone’s Private Equity Group based in London, has outlined the appeal of firms operating in gaming markets that offer a “degree of regulatory certainty”.

Blackstone has been one of the most successful investors in the sector in recent years after acquiring Spanish gambling operator Cirsa in April after teaming up with CVC Captial Partners to seal a takeover of Paysafe Group in 2017.

Hong said that a market’s regulatory outlook is a “critical component” of determining potential M&A targets in the sector.

Haide Hong, managing director in Blackstone’s Private Equity Group:

Hong also describes the implications of what would appear to be a tightening of the regulatory outlook in the United Kingdom, considering the reduction of the stake limit for fixed-odds betting terminals this year.

Haide Hong, managing director in Blackstone’s Private Equity Group:

Blackstone’s Private Equity Group managing director also noted that there remain opportunities in land-based sector despite the fact that iGaming arguably offers a steeper growth trajectory.

Haide Hong, managing director in Blackstone’s Private Equity Group:

He also added that there is “rightly a lot of excitement about the US”, however, “the market will definitely grow, but in terms of how quickly, let’s see. The opportunity is definitely out there and if the US market continues to open up, it will benefit B2B suppliers that are active in the market.”