To boost its presence in the Indian gaming industry, Metaverse and gaming technology company OneVerse has acquired online poker startup Spartan Poker and allocated $120 million (Rs 10,000 crore) for M&A in the Indian real money gaming (RMG) space, reports rummybo.
Backed by family offices and Founders Capital, OneVerse plans to invest in M&A activities in nearly 13 RMG companies in the poker, rummy and fantasy gaming sectors over the next three months.
Spartan Poker is the first acquisition under the program and OneVerse has completed the deal for an undisclosed amount. Spartan Poker, known for hosting poker tournaments with prize pools of over Rs 5,000 crore every year, adds significant value to OneVerse’s gaming portfolio.
Paul Michael, CEO of OneVerse Gaming, highlighted the M&A opportunities spurred by recent macroeconomic headwinds. The company plans to complete more acquisitions in the coming months while expanding into Europe and the US. Michael said this major M&A investment is focused on creating a scalable operation that can withstand long-term challenges while prioritizing player retention strategies and creating significant value for gaming enthusiasts.
The gaming industry has seen a 15% decline in users due to the impact of tax increases. To effectively address these challenges, OneVerse has engaged the expertise of renowned global corporate and investment bank Rand Merchant Bank to provide advisory support. There are approximately 568 million online gamers in India, of which nearly a quarter participate in paid gaming activities. The RMG sector is estimated to be a $2 billion industry in FY23.rummy glee
Recent tax policy changes, especially the increase in GST to 28%, have made the RMG business model unsustainable for many startups and mid-sized companies.
By merging the capabilities of both entities, OneVerse aims to emulate a dominant force that will shape the future of interactive entertainment. The partnership leverages the technological expertise of OneVerse and the creative expertise of Spartan to bring a range of innovative products and experiences to gamers around the world. Gamers can look forward to more cutting-edge games that seamlessly blend immersive experiences with state-of-the-art technology. Additionally, as its global reach expands, OneVerse will explore new markets and engage with diverse gaming communities around the world.rummy gold