Gambling M&A in 2026: what is driving deals
Tax rises, regulation, lottery modernisation and private equity are reshaping gambling M&A. A former PLC CEO's view of the 2026 deal market and what it means for buyers and sellers.
By Andrew Lindley · · 3 min read
Gambling M&A in 2026 is being driven less by a race for scale and more by tax, regulation and specialisation. Advisers surveyed by iGaming Business described a shift from a land-grab mindset towards portfolio optimisation, buying into adjacent markets and roll-ups of B2B suppliers (iGaming Business).
I have been on several sides of gambling deals: leading M&A at the Tote, selling Lot.to to Sportech, running disposals as Sportech's CEO, and developing a take-private bid with a gambling-focused private equity house. Here is what I see driving the market.
1. Tax is forcing consolidation
Higher taxes squeeze smaller operators hardest. In the UK, Remote Gaming Duty rose to 40% from April 2026 (HM Government). In Brazil, the tax on gross gaming revenue is stepping up from 12% to 15% by 2028 (Yogonet).
When margins compress, sub-scale businesses either sell or struggle. That creates opportunities for well-capitalised buyers, including in distressed situations.
2. Lottery is in play
Lottery is the standout theme. Allwyn completed its acquisition of a 62.3% stake in PrizePicks for US$1.53bn, excluding earnouts, and has been combining with Greek operator OPAP in a deal valued at around €16bn (Gambling News).
Advisers also point to lotteries as cash-rich, undervalued and ripe for modernisation. Having built two digital lottery businesses, I agree: the gap between how many lotteries operate and what technology now allows is large.
3. Private equity is selective
The big private equity names remain active, but mid-market deals are harder. Licensing approvals in markets such as the UK and Nevada take time and money, which puts some funds off (iGaming Business).
That favours buyers who understand regulation and can plan approvals into the deal timetable from the start.
4. Buying beats building in new markets
Many operators now enter new countries by buying a strong local brand rather than launching from scratch. Local licences, payment relationships and customer trust are hard to replicate quickly.
What this means for sellers
- Get your regulatory house in order early. Licensing issues are the most common reason deals slow down or fail. I cover the main ones in regulatory due diligence in gambling deals.
- Know your story. Buyers pay for clean structures, reliable data and a clear growth case.
- Think about timing. In a consolidating market, the best time to sell is before you are forced to.
What this means for buyers
- Price in the approval timetable. Change-of-control approvals can take months.
- Look for modernisation plays, particularly in lottery, where technology can unlock value.
- Do regulatory diligence as seriously as financial diligence.
If you are considering a gambling acquisition, disposal or investment, I am happy to discuss it in confidence. Get in touch.
Sources
Gambling industry business adviser. Holds a solicitor's practising certificate but does not give legal advice through this business. Co-founder of Lottoland and Lot.to, former CEO of Sportech plc and former General Counsel of the Tote. More about Andrew