Evolution has announced a deal to acquire table game designer Galaxy Gaming for $85 million in cash, bringing in-house a number of patented side bets it previously had to license. Las Vegas-based Galaxy Gaming is best known for its 21+3 blackjack side bet, which is now licensed in 131 regulatory jurisdictions around the world, including 28 US states.
Evolution will pay $3.20 per share, representing a 124% premium over Galaxy’s closing price on July 17, the last trading day before the announcement. Galaxy Gaming board members have approved the acquisition, which is expected to be completed in mid-2025.
In a press release, Evolution CEO Martin Carlesund said:
We are thrilled to announce the acquisition of Galaxy Gaming, representing a significant milestone in our mission to provide unparalleled gaming experiences to our customers. Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.
Galaxy Gaming side bets, such as the 21+3, are already available in Evolution live dealer games in the US. The two companies extended their partnership for another 10 years in May 2023.
Evolution Gains Access To Unique Games
Galaxy is known for its side bets, which also include Perfect Pairs and Lucky Ladies. However, the company also develops unique table games, many of which are unavailable at online casinos.
Galaxy Gaming has moved toward expanding to US online casinos through a deal with distribution platform ODDSworks. In January, the company introduced Roulette Up, an adaptation of classic American roulette with a unique progressive side bet. Galaxy expects to follow Roulette Up with Split To Double Blackjack, which features a progressive jackpot.
Other games in Galaxy’s portfolio that we could see at online casinos include:
- Yes Dice, which involves two dice
- Three Dice Baccarat, where you play with dice instead of cards
- Bonus Craps, which allows players to place three side bets
- Player’s Edge 21, where you play without the 10 card
- Buster Blackjack, which has a side bet on whether the dealer will bust
Acquisition Could Help Evolution in the US
After the two companies extended their partnership last year, Galaxy Director of iGaming & Performance Jason McCulloch told Bonus that Evolution would bring two of the company’s games to US online casinos. Evolution already offers Galaxy live dealer games internationally, including:
- Double Ball Roulette
- Texas Hold ’em Bonus Poker
- Caribbean Stud
Galaxy’s live dealer options could help Evolution in the US, where the company’s growth has slowed. Last quarter’s year-over-year growth was just over half the global growth. Once a monopoly, Evolution has been losing its influence on the market due to increased competition from companies like Playtech and Light & Wonder’s subsidiary Authentic Gaming.
Galaxy Gaming’s unique games could align with live dealer trends that Evolution is observing. According to Evolution’s CPO Todd Haushalter, none of the company’s top five games globally are traditional table games.
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