NetEnt launches in Switzerland
Since the Swiss referendum a few months ago, the gambling market the Alpine Republic is enormously sealed off. In is who is in. And that's not too many. Officially, only the country's casinos are allowed to make their games available online. But only if the permit has been extended accordingly. Netent is one of many online casinos on the web. Now the Swedish developer can also count himself among the elite group of players in Switzerland. The reason for this is a cooperation with two casinos. Both the Grand Casino Baden and the Grand Casino Luzern will in future make games fromNetEnt Casinos available online.
ISO certificate as the biggest hurdle for the partnership
The Swedish gambling developerNetEnt starts on the market ofSwiss online casinos. The group enters into a cooperation with two casinos after the required ISO certificate could be obtained as the last major hurdle. This was a basic requirement for signing the contracts. Theglobal standard ISO 27001 includes various test areas, such as data protection, infrastructure and network configuration or development. This certificate is only issued to companies that have approved information security management (ISMS). For NetEnt, the certification is a huge achievement. Not only the now confirmed cooperations come about in this way. The developeron the basis of this certification may also enter into further partnerships in Switzerland in the future.
The certificate is initially issued for three years. The developer must then undergo further tests. The certification proves thatNetEnt meets all measures and requirements in the area of information security. These include, for example, protection against hackers. In a press release, NetEnt CEO Henrik Fagerlund stated:
“The ISO 27001 certification is an important recognition for us and the result of the dedicated and hard work of our team. We are very proud to be a reliable, trustworthy and secure partner for customers and stakeholders."
Sweden take off in Switzerland
Now that the certificate has officially passed the last hurdle been mastered, NetEnt can start working for andwith the Grand Casino Luzern and the Grand Casino Baden. Henrik Fagerlund explained that they are very happy about entering the Swiss market. This will enable the company's growth strategy to be continued and its position on the regulated markets in Europe to be strengthened. The Swedes are particularly pleased that Switzerland is now one of them. Easy to understand:Switzerland is considered one of the toughest gambling markets ever. In 2018, a new gambling law was passed, previously decided by referendum. Foreign companies have not been allowed to operate online in Switzerland for a long time. These are even listed on a blacklist and subject to corresponding network blocks. The Swiss online market is only reserved for domestic casinos.
The activity of NetEnt on the Swiss market is only made possible by the fact that the cooperation with the two casinos was brought into being. Otherwise the Swedes would also end up on the country's blacklist. In addition to NetEnt, the developers Paf, Greentube and Evolution Gaming. Many of the developers have already been active in Switzerland, but for foreign companies. After saying goodbye, some of the providers quickly returned to the Alpine republic. are active on the Swiss market
Red Tiger is also part of the game
NetEnt is also allowed to provide the games of the providerRed Tiger Gaming. Die Schweden haben das Angebot erst vor kurzer Zeit übernommen und tragen gleichzeitig auch die ISO-Zertifizierung von Red Tiger. Somit steht der Erweiterung der Portfolios in der Schweiz nichts im Wege. Allzu lange warten müssen die Spieler wohl auch nicht mehr. Wie Fagerlund mitteilt, sei die Red Tiger integration is already in full swing. According to NetEnt, the takeover promises above all an increase in efficiency and competitiveness. The group will slightly adjust the structure of Red Tiger and will probably lay off some of the old employees. There is talk of around 120 employees behind closed doors. NetEnt emphasizes that the measures are part of the company strategy that was developed some time ago. According to their own statement, the Swedes see a lot of savings potential with Red Tiger. From the second half of 2020, the annual savings should result in around 13.6 million euros in cash flow. According to the company's estimates, even more than 15 million euros should be possible.
In this context, NetEnt informed that the operating result in the first quarter of 2019 may have been negatively impacted by the acquisition. This would be mainly due to the restructuring costs of around 25 million Swedish crowns, which are to be reported as one-off items. The group states:
“We are now entering the next stage in the integration of Red Tiger, whose members will also become shareholders of NetEnt. The integration will unlock the full potential of our combined capabilities, deliver significant gains in game development efficiency and strengthen our position as a leader in the online casino space.”
Further partnerships to come
Despite the currently prevailing health crisis, things are looking really good around the SwedishOnline Casino developer NetEnt. The group announced that thefirst three months of the year had developed as expected. Negative influences are not felt. This circumstance, in combination with the ISO certificate that has now been received, should ensure that the group is far from finished with consolidating its position on the European markets. More partnerships can be expected in the coming months, especially in Switzerland. This is also good news for shareholders. In particular, the developments surrounding the takeover and the good start to 2020 should ensure satisfaction here. Now the partnership with the casinos just has to turn out to be a success.