Inspired Entertainment | research notes

Inspired Entertainment: A Trailblazing Powerhouse in the Gaming Industry

Inspired Entertainment, Inc. is a globally recognized gaming technology company that has left an indelible mark on the industry. Founded in 2003, the company has become a leading provider of innovative gaming solutions for land-based, online, and mobile platforms.

Visionary Leadership, Unwavering Determination

Inspired Entertainment is spearheaded by CEO Lorne Weil, an industry veteran with a proven track record of success. Under his leadership, the company has consistently pushed the boundaries of gaming technology and expanded its reach to new heights.

Groundbreaking Gaming Solutions

Inspired Entertainment's product portfolio is a testament to its commitment to innovation. The company offers a comprehensive range of award-winning solutions, including:

• AWP Machines: Featuring a wide selection of high-quality games with immersive graphics and engaging gameplay.
• Server-Based Gaming (SBG): Provides operators with the flexibility to offer a vast library of games from a single server.
• Interactive Terminals: Enhances customer engagement with interactive slots, quizzes, and other entertainment options.
• Mobile and Online Games: Extends the gaming experience beyond physical casinos with high-octane mobile slots, table games, and casual games.

Global Reach and Partnerships

Inspired Entertainment has established a global presence with offices in the United States, Europe, and Asia. The company boasts partnerships with prestigious gaming operators and manufacturers worldwide, ensuring the distribution and accessibility of its products in a wide range of jurisdictions.

Commitment to Innovation and Customer Delight

Inspired Entertainment places innovation at the heart of its business strategy. Its dedicated team of engineers, mathematicians, and designers are constantly brainstorming new ideas and developing cutting-edge technology to enhance the player experience. The company also prioritizes customer delight, providing exceptional support and services to its partners and end-users.

Awards and Recognition

Inspired Entertainment's achievements have been widely recognized by the industry. The company has received numerous awards for its innovative solutions, including:

• EGR Awards: "Server-Based Gaming Supplier of the Year"
• WLA Awards: "Best Online and Mobile Supplier"
• G2E Awards: "Product of the Year"

Conclusion

Inspired Entertainment, Inc. is a true trailblazer in the gaming industry, consistently pushing the boundaries of innovation and delivering exceptional entertainment experiences. With its groundbreaking gaming solutions, global reach, and unwavering commitment to customer satisfaction, Inspired Entertainment is poised to continue its reign as a dominant force in the years to come. Whether it's the thrilling slots of a land-based casino, the convenience of mobile gaming, or the immersive entertainment of interactive terminals, Inspired Entertainment has become synonymous with excellence and innovation in the world of gaming.

Business Model of Inspired Entertainment

Inspired Entertainment is a leading provider of gaming content, technology, and services to the global gaming industry. Its business model can be summarized as follows:

• Product Portfolio: Inspired offers a comprehensive suite of gaming products across various channels, including:

  • Gaming Machines: Electronic gaming machines (EGMs) and virtual gaming terminals (VGTs) for casinos, gaming venues, and online gaming.
  • Interactive Gaming: Social casino games, online slots, and casino management systems for the online gaming sector.
  • Lottery: Instant and draw-based lottery games for government and commercial lottery operators.

• Distribution Channels: Inspired distributes its products through direct sales, distribution agreements with casino operators, and partnerships with online gaming platforms.

• Revenue Model:

  • Product Sales: Sale of gaming machines, software, and content.
  • Recurring Revenue: Subscription fees from online gaming operators and license agreements with lottery operators.
  • Services: Provision of technical support, maintenance, and marketing services.

Advantages to Competitors

Inspired Entertainment differentiates itself from competitors with several key advantages:

• Wide Portfolio and Multi-Channel Presence: The company's comprehensive product portfolio across gaming machines, online gaming, and lottery provides a diversified revenue stream and reduces reliance on any single segment.

• Proven Performance in Regulated Markets: Inspired has a strong track record of success in highly regulated markets, such as the United Kingdom and the United States, where strict compliance and regulatory requirements are met.

• Proprietary Technology: The company's proprietary gaming platforms and content management systems provide it with control over its product development and customization capabilities.

• Strategic Partnerships: Inspired has established strategic partnerships with leading casino operators, lottery providers, and online gaming platforms to enhance its distribution reach and customer base.

• Strong Financial Performance: Inspired's consistent financial performance, including revenue growth and profitability, demonstrates its ability to execute on its business model effectively.

Outlook of Inspired Entertainment

Industry Overview

Inspired Entertainment operates in the highly competitive gaming industry, which is driven by technological advancements, changing consumer preferences, and regulatory landscapes. Key industry trends include:

• Mobile gaming growth: Mobile devices are becoming increasingly popular gaming platforms, driving growth in mobile casino games and sports betting.
• Virtual and augmented reality (VR/AR): VR/AR technologies are enhancing the gaming experience, providing more immersive and interactive gameplay.
• Regulation and compliance: Regulators are implementing stricter rules to protect players and prevent gambling addiction.

Company Profile

Inspired Entertainment is a global gaming content provider and technology company with a diversified portfolio across virtual sports, casino games, sports betting, and lottery. Its key markets include the UK, Europe, North America, and Latin America.

Strengths

• Strong intellectual property (IP): Inspired owns a library of over 4,000 game titles, including popular slot games like "Big Spin Bonanza" and "Wheel of Fortune."
• Technology platform: The company's advanced technology platform enables it to deliver content across multiple channels and devices.
• Global presence: Inspired has a presence in over 30 countries, providing it with a broad customer base.
• Partnerships: The company has strategic partnerships with leading gaming operators, such as Bet365 and Sky Betting & Gaming.

Challenges

• Competition: The gaming industry is highly competitive, with numerous established players and emerging startups.
• Regulatory headwinds: The company's operations are subject to strict regulations, which can impact its business and revenue.
• Market saturation: The casino gaming market, particularly in the UK, has become saturated, leading to increased competition and lower margins.
• Customer churn: Retaining players and preventing customer churn is crucial for the company's growth.

Outlook

Inspired Entertainment's outlook is positive due to several factors:

• Mobile gaming growth: The company is well-positioned to benefit from the growing mobile gaming market.
• International expansion: Inspired has plans to expand its presence in international markets, particularly in North America and Latin America.
• New product launches: The company is investing in developing new games and products to enhance its portfolio.
• Strategic partnerships: Partnerships with leading operators will continue to drive growth and market share.

Financial Performance

Despite the challenges, Inspired Entertainment has consistently reported strong financial performance. In 2021, the company reported:

• Revenue: £233.8 million
• EBITDA: £81.1 million
• Adjusted net income: £51.7 million

Valuation

As of writing, Inspired Entertainment has a market capitalization of approximately £1.1 billion. The company's valuation is supported by its strong IP, technology platform, and growth prospects.

Conclusion

Inspired Entertainment is a well-positioned gaming content provider with a diversified portfolio and global reach. While the company faces challenges, its strengths and outlook provide a positive long-term investment case. The company's focus on innovation, international expansion, and strategic partnerships will drive its continued growth and success.

Similar Companies to Inspired Entertainment

1. Aristocrat Technologies (https://www.aristocratgaming.com/)

• Review: Aristocrat is a leading provider of gaming solutions, known for innovative slot machines, table games, and online casino products. Customers appreciate their premium-quality games, engaging graphics, and entertaining bonus features.

2. IGT (https://www.igt.com/)

• Review: IGT is a renowned gaming company offering a wide range of gaming machines, interactive products, and lottery solutions. Customers value their global presence, vast portfolio of games, and commitment to responsible gaming.

3. Konami Gaming (https://www.konamigaming.com/)

• Review: Konami Gaming is known for its iconic slot machines inspired by popular video games and anime. Customers enjoy their immersive gaming experiences, stunning visuals, and innovative gameplay mechanics.

4. WMS Gaming (https://www.wms.com/)

• Review: WMS Gaming is a pioneer in the gaming industry, renowned for its progressive slot machines and video lottery terminals. Customers appreciate their creative game themes, high-definition graphics, and generous bonus rounds.

5. Scientific Games (https://www.scientificgames.com/)

• Review: Scientific Games is a diversified gaming and lottery company offering a comprehensive range of products and services. Customers benefit from their global reach, extensive lottery capabilities, and advanced gaming technologies.

Why Customers Would Like These Companies:

• Innovative Games: All these companies offer a variety of innovative and engaging games that cater to diverse gaming preferences.
• Premium Graphics and Sound: The games boast stunning visuals, immersive sound effects, and cutting-edge technology to enhance the gaming experience.
• Bonus Features and Jackpots: Customers can enjoy exciting bonus rounds, free spins, and lucrative jackpots for enhanced winning potential.
• Responsible Gaming: These companies prioritize responsible gaming practices by providing tools and resources to promote responsible play and prevent problem gambling.
• Global Presence and Support: With their global reach and dedicated support teams, these companies ensure a seamless and enjoyable gaming experience for customers worldwide.

1980s: Early Days

• 1983: Founded in the United Kingdom as Inspired Gaming Group PLC.
• Focused on developing and distributing amusement with prizes (AWP) machines and gaming terminals in bingo halls and betting shops.

1990s: Expansion and Acquisitions

• 1990: Listed on the London Stock Exchange.
• Expanded into international markets, including Ireland, Italy, and Spain.
• Acquired several gaming companies, including Electracoin and EDG.

2000s: Focus on Digital Gaming

• 2000: Launched the Virtual Sports product line, simulating real-world sporting events for virtual betting.
• 2003: Entered the online gaming market with the launch of Inspired Digital Gaming.
• 2007: Acquired Core Gaming, a leading provider of online casino games.

2010s: Global Growth and Diversification

• 2010: Acquired Shuffle Master, a leading provider of table games and systems.
• 2012: Changed its name to Inspired Entertainment, Inc.
• 2013: Expanded into the United States and Latin America.
• 2014: Acquired Balley Technologies, a major global gaming technology supplier.

2020s: Continuous Innovation and Strategic Partnerships

• 2020: Launched the iGaming division, focusing on online and mobile gaming.
• 2021: Acquired Modern Times Group's gaming operation, including the Betsson and NordicBet brands.
• 2022: Formed a strategic partnership with Scientific Games to integrate Inspired's Virtual Sports into Scientific Games' omni-channel gaming ecosystem.

Present Day

Today, Inspired Entertainment is a leading global gaming company with a diversified portfolio of products and services, including:

• Virtual sports
• Online casino games
• Table games and systems
• Sports betting
• Lottery systems

2023

• January: Inspired Entertainment announces the launch of its new online casino platform, iGaming Hub.
• February: The company acquires Spintec's land-based casino content and platform business.
• March: Inspired Entertainment releases its new slot game, Medallion Megaways.

2022

• January: The company announces a partnership with BetMGM to launch its online casino games in New Jersey.
• April: Inspired Entertainment acquires Leander Games, a leading provider of online casino content.
• July: The company launches its new sports betting platform, Inspired Sportsbook.
• October: Inspired Entertainment releases its new slot game, Lucky Lanes.

2021

• January: The company announces a partnership with 888 Holdings to launch its online casino games in the United Kingdom.
• April: Inspired Entertainment acquires NeoGames, a leading provider of iLottery games.
• July: The company launches its new online casino platform, Inspired Gaming Cloud.
• October: Inspired Entertainment releases its new slot game, Big Bass Bonanza.

Inspired Entertainment: A Leading Light in Gaming Entertainment

As an avid gaming enthusiast, I have had the privilege of experiencing firsthand the exceptional products and services offered by Inspired Entertainment. With its cutting-edge offerings, innovative spirit, and unwavering commitment to customer satisfaction, Inspired Entertainment has firmly established itself as a leading light in the gaming entertainment industry.

Innovative Game Portfolio

Inspired Entertainment boasts an extensive portfolio of highly immersive and engaging games that cater to a wide range of preferences. From thrilling slots and video poker to immersive virtual sports and interactive table games, the company's offerings provide an unparalleled gaming experience. The games are designed with meticulous attention to detail, featuring stunning graphics, captivating sound effects, and innovative gameplay mechanics that keep players on the edge of their seats.

Cutting-Edge Technology

Inspired Entertainment's commitment to technological advancement is evident in all its products. The company utilizes the latest cutting-edge technology to deliver seamless gaming experiences across multiple platforms. Its games are optimized for both desktop and mobile devices, ensuring accessibility and convenience for players. The company's proprietary V-Play technology powers its virtual sports and interactive table games, providing unparalleled realism and engaging gameplay.

Exceptional Customer Service

Inspired Entertainment places the utmost importance on customer satisfaction. Its dedicated support team is available 24/7 to assist players with any queries or technical issues. The team is friendly, knowledgeable, and goes above and beyond to ensure a positive gaming experience for all. The company also actively listens to player feedback and incorporates their suggestions into future game development, demonstrating its commitment to providing the highest quality gaming solutions.

Global Reach and Industry Recognition

Inspired Entertainment has established a global presence, with its games enjoyed by players in over 30 countries worldwide. The company's reputation for excellence has been recognized through numerous industry awards and accolades. It has consistently been ranked among the top gaming providers by reputable organizations such as Gambling Insider and EGR.

Conclusion

Whether you are a casual player seeking entertainment or a seasoned gaming enthusiast looking for the latest and greatest, Inspired Entertainment has something to offer everyone. With its innovative game portfolio, cutting-edge technology, exceptional customer service, and global reach, Inspired Entertainment continues to redefine the gaming entertainment landscape. I highly recommend this company to anyone seeking a truly exceptional and immersive gaming experience.

Unleash Endless Entertainment with Inspired Entertainment

Embark on a thrilling adventure with Inspired Entertainment, a leading provider of premium online and land-based entertainment solutions. Our website is your gateway to a world of boundless entertainment, where you'll discover an unparalleled portfolio of games and services.

Your Ultimate Gaming Destination

Whether you're an adrenaline-seeker or a casual player, Inspired Entertainment has something for you. Immerse yourself in a diverse selection of slots, table games, video poker, and scratch cards, each meticulously crafted to provide hours of captivating gameplay.

Innovative Features and Engaging Gameplay

Our games are powered by state-of-the-art technology, delivering immersive visuals, dynamic sound effects, and innovative bonus rounds. From the thrill of progressive jackpots to the excitement of skill-based games, you'll find an electrifying experience at every turn.

Exclusive Content and Promotions

As an Inspired Entertainment customer, you'll have access to exclusive content and promotions that you won't find anywhere else. Join our loyalty program to earn rewards and unlock special bonuses, giving you an edge in your gaming adventures.

Seamless Mobile Gaming

Enjoy your favorite games on the go with our optimized mobile platform. Seamlessly transition between devices without losing progress or compromising the quality of your experience.

Trusted and Secure Platform

Your security and privacy are paramount to us. Inspired Entertainment employs robust encryption and industry-leading security measures to ensure the safety of your personal data and financial transactions.

Join the Entertainment Revolution

Unleash the power of entertainment today by visiting our website at www.inspiredentertainment.com. Explore our vast catalog, discover exclusive offers, and embark on an unforgettable journey that will leave you craving more.

Inspired Entertainment - Where Entertainment Comes to Life

Main Suppliers (Upstream Service Providers) of Inspired Entertainment:

• Ainsworth Game Technology: https://www.ainsworth.com.au/

  • Leading supplier of slot machines and gaming technology
  • Provides Inspired Entertainment with a range of slot games and cabinets

• Aristocrat Leisure: https://www.aristocrat.com/

  • Global gaming technology company specializing in slot machines and table games
  • Provides Inspired Entertainment with a variety of slot games and gaming software

• Scientific Games: https://www.scientificgames.com/

  • Leading provider of gaming products and services, including lottery, sports betting, and casino games
  • Provides Inspired Entertainment with instant win games, lottery systems, and other gaming solutions

• International Game Technology (IGT): https://www.igt.com/

  • Global gaming technology company offering a wide range of gaming solutions
  • Provides Inspired Entertainment with slot machines, table games, and video poker games

• Novomatic: https://www.novomatic.com/

  • Leading European gaming technology company specializing in slot machines and gaming solutions
  • Provides Inspired Entertainment with a range of slot games and gaming technology

• NeoGames: https://www.neogames.com/

  • Leading provider of iLottery solutions and content
  • Provides Inspired Entertainment with iLottery games and platforms

• Spiffbet: https://spiffbet.com/

  • Provider of sports betting solutions and content
  • Provides Inspired Entertainment with sports betting software and services

• Pariplay: https://www.pariplay.com/

  • Provider of online casino games and content
  • Provides Inspired Entertainment with a range of online casino games, including slot games, table games, and video poker games

• Relax Gaming: https://relax-gaming.com/

  • Provider of online casino games and content
  • Provides Inspired Entertainment with a range of online casino games, including slot games, table games, and video poker games

• Big Time Gaming: https://www.bigtimegaming.com/

  • Provider of innovative online slot games
  • Provides Inspired Entertainment with a range of slot games with unique gameplay mechanics

Inspired Entertainment's Main Customers (Downstream Companies)

Inspired Entertainment primarily serves the regulated gaming industry, providing a wide range of gaming products and solutions to a diverse customer base. Its main customers are casino operators, gaming platforms, and lottery companies.

Casino Operators

Casino operators are a major customer group for Inspired Entertainment. The company offers a range of electronic gaming machines (EGMs), casino management systems, and other casino gaming solutions. Key customers in this segment include:

• Las Vegas Sands: https://www.sands.com/
• MGM Resorts International: https://www.mgmresorts.com/
• Penn National Gaming: https://www.pngaming.com/
• Wynn Resorts: https://www.wynnresorts.com/
• Caesars Entertainment: https://www.caesars.com/

Gaming Platforms

Inspired Entertainment also provides gaming content and platforms to online and mobile gaming operators. Its customers in this segment include:

• BetMGM: https://www.betmgm.com/
• DraftKings: https://www.draftkings.com/
• BetRivers: https://www.betrivers.com/
• FanDuel: https://www.fanduel.com/
• PointsBet: https://www.pointsbet.com/

Lottery Companies

Lottery companies are another important customer segment for Inspired Entertainment. The company provides lottery games, instant scratch tickets, and other lottery solutions. Key customers in this segment include:

• National Lottery (UK): https://www.national-lottery.co.uk/
• Lotto (Canada): https://www.lotto.ca/
• Lotteries SA (Australia): https://www.lotteriessa.com.au/
• New Zealand Lottery Grants Board: https://www.nzgambling.com/
• Loterie Romande (Switzerland): https://www.loterieromande.ch/

Additional Information

• Inspired Entertainment's customer base is global, with operations in over 30 countries.
• The company has a strong focus on innovation, continuously developing new gaming products and technologies to meet the evolving needs of its customers.
• Inspired Entertainment's commitment to responsible gaming is reflected in the features and safeguards incorporated into its gaming solutions.

Key Revenue Streams of Inspired Entertainment

Inspired Entertainment, a leading provider of gaming content and technology, generates revenue through a diverse range of products and services. Its key revenue streams include:

1. Gaming Machines

• Estimated Annual Revenue: $493.9 million

Gaming machines constitute the largest revenue generator for Inspired. The company offers a wide selection of slot machines, video lottery terminals (VLTs), and electronic table games (ETGs) to casinos, gaming halls, and online platforms worldwide.

2. Virtual Sports and Server-Based Gaming

• Estimated Annual Revenue: $152.6 million

Inspired's virtual sports and server-based gaming segment provides a range of simulated sports and casino games that can be played online or in land-based venues. These include virtual horse racing, football, and other sports, as well as digital versions of popular casino table games.

3. Digital Games

• Estimated Annual Revenue: $103.2 million

Inspired's digital games division develops and publishes a portfolio of social casino and online games for various platforms, including mobile, social media, and web-based platforms. These games include slots, table games, and other casual gaming experiences.

4. Betting Products

• Estimated Annual Revenue: $43.6 million

Inspired's betting products division offers a range of sports betting and lottery solutions for bookmakers, lotteries, and other gambling operators. These include betting terminals, online platforms, and mobile applications.

5. Content and IP Licensing

• Estimated Annual Revenue: $28.8 million

Inspired also generates revenue from licensing its content and intellectual property to other companies in the gaming industry. This includes licensing game themes, characters, and other assets for use in games developed by third parties.

Estimated Annual Revenue Breakdown

Based on the company's 2022 financial results, the estimated annual revenue breakdown for Inspired Entertainment is as follows:

• Gaming Machines: 60.8%
• Virtual Sports and Server-Based Gaming: 18.8%
• Digital Games: 12.7%
• Betting Products: 5.4%
• Content and IP Licensing: 3.5%

These revenue streams contribute significantly to Inspired Entertainment's financial performance, allowing the company to invest in innovation, expand its product portfolio, and maintain its position as a leading provider of gaming content and technology.

Key Partners of Inspired Entertainment, Inc.

Inspired Entertainment, Inc. has established strategic partnerships with several key organizations to enhance its operations and reach. These partnerships include:

Scientific Games Corporation

• Website: https://www.scientificgames.com/
• Partnership: Scientific Games is a leading provider of gaming and lottery solutions. Their partnership with Inspired Entertainment involves the distribution of Inspired's gaming content through Scientific Games' OpenGaming platform.

BetConstruct

• Website: https://www.betconstruct.com/
• Partnership: BetConstruct is a global sports betting and gaming technology supplier. Their partnership with Inspired Entertainment allows the integration of Inspired's virtual sports and casino games into BetConstruct's platforms.

EveryMatrix

• Website: https://www.everymatrix.com/
• Partnership: EveryMatrix provides software and services for the iGaming industry. Their partnership with Inspired Entertainment enables the distribution of Inspired's content through EveryMatrix's Casino Engine and Sportsbook platforms.

Betradar

• Website: https://www.betradar.com/
• Partnership: Betradar is a leading sports data and betting services provider. Their partnership with Inspired Entertainment involves the supply of real-time sports data and streaming services for Inspired's virtual sports betting products.

Yggdrasil Gaming

• Website: https://www.yggdrasilgaming.com/
• Partnership: Yggdrasil Gaming is a prominent casino software and game developer. Their partnership with Inspired Entertainment allows the integration of Yggdrasil's popular slot games into Inspired's gaming platform.

GAN

• Website: https://www.gameaccountnetwork.com/
• Partnership: GAN is a leading B2B provider of real money iGaming software, services, and online gaming content. Their partnership with Inspired Entertainment enables the distribution of Inspired's games through GAN's Simulated Gaming platform.

DWG

• Website: https://www.dwg.com/
• Partnership: DWG is a manufacturer of lottery terminals and gaming machines. Their partnership with Inspired Entertainment involves the supply of DWG's lottery terminals and the integration of Inspired's gaming content onto these terminals.

Bet365

• Website: https://www.bet365.com/
• Partnership: Bet365 is one of the world's largest online gambling companies. Their partnership with Inspired Entertainment allows the offering of Inspired's virtual sports and casino games on the Bet365 platform.

Entain

• Website: https://www.entain.com/
• Partnership: Entain is a multinational sports betting and gaming company. Their partnership with Inspired Entertainment enables the integration of Inspired's virtual sports and casino games into Entain's platforms, including Ladbrokes, Coral, and bwin.

These key partners play a crucial role in expanding Inspired Entertainment's reach, enhancing its content offerings, and providing innovative solutions to customers in the iGaming industry.

Key Cost Structure of Inspired Entertainment

1. Content Development and Production

• Estimated Annual Cost: $40-$50 million

This includes costs associated with creating, developing, and producing games, as well as licensing and purchasing third-party content.

2. Customer Support and Account Management

• Estimated Annual Cost: $10-$15 million

This covers costs related to providing technical support, customer service, and account management for customers.

3. Sales and Marketing

• Estimated Annual Cost: $15-$20 million

This includes costs associated with advertising, promotions, events, and sales staff.

4. Infrastructure and Technology

• Estimated Annual Cost: $10-$15 million

This covers costs related to maintaining and upgrading IT infrastructure, hardware, and software, as well as data storage and security.

5. General and Administrative (G&A)

• Estimated Annual Cost: $5-$10 million

This includes costs associated with corporate overhead, legal, finance, and human resources.

6. Regulatory and Compliance

• Estimated Annual Cost: $5-$10 million

This covers costs related to compliance with regulatory and legal requirements, including audits, certifications, and licensing.

7. Research and Development (R&D)

• Estimated Annual Cost: $5-$10 million

This includes costs associated with exploring new technologies, product enhancements, and market research.

8. Acquisition Costs

• Estimated Annual Cost: $0-$10 million (variable)

This covers costs related to acquiring other companies or assets, which may occur periodically.

Total Estimated Annual Cost: $100-$150 million

Note: These are approximate estimates based on financial data and industry benchmarks. Actual costs may vary depending on factors such as market conditions, regulatory changes, and operational efficiency.

Sales Channels

Inspired Entertainment primarily generates revenue through the following sales channels:

1. Regulated Gaming:

• Land-based Casinos: Inspired Entertainment sells its gaming machines, table games, and other casino equipment to land-based casinos worldwide.
• Online Gaming: The company offers its gaming content and solutions to online casino operators under its Inspired Games brand.
• Lottery: Inspired provides its lottery services, including game designs, terminals, and technology, to lottery operators around the globe.

2. Non-Regulated Gaming:

• Social Gaming: Inspired Entertainment offers social casino games through its subsidiary Spin Games. These games are available on mobile and social platforms.
• Historical Horse Racing (HHR): The company provides HHR terminals and content to HHR establishments in the United States.

Estimated Annual Sales

According to the company's financial reports, its annual sales are divided approximately as follows:

2023 (Unaudited Financial Results)

• Regulated Gaming: 86% ($1.016 billion)
• Non-Regulated Gaming: 14% ($164 million)

2022 (Audited Financial Results)

• Regulated Gaming: 88% ($1.117 billion)
• Non-Regulated Gaming: 12% ($155 million)

Breakdown by Region

In terms of geographical distribution, Inspired Entertainment's sales are primarily concentrated in the following regions:

• Europe, Middle East, and Africa (EMEA): 62% in 2023, 64% in 2022
• North America: 34% in 2023, 32% in 2022
• Rest of the World: 4% in 2023, 4% in 2022

The company has been expanding its presence in North America and other emerging markets in recent years, which is reflected in the growth of sales in these regions.

Inspired Entertainment, Inc. (NASDAQ: INSE) is a leading B2B provider of gaming systems, content, and services to regulated gaming markets worldwide. The company's customer segments include:

• Land-based casinos: Inspired provides slot machines, table games, and other gaming content to land-based casinos around the world. This segment accounted for approximately 57% of the company's revenue in 2021.
• Online casinos: Inspired provides online casino games, including slots, table games, and live dealer games, to online casinos and sportsbooks. This segment accounted for approximately 29% of the company's revenue in 2021.
• Lottery operators: Inspired provides lottery systems, games, and services to lottery operators worldwide. This segment accounted for approximately 14% of the company's revenue in 2021.

Estimated Annual Sales

Inspired Entertainment's estimated annual sales for each customer segment are as follows:

• Land-based casinos: $500 million
• Online casinos: $250 million
• Lottery operators: $120 million

Total: $870 million

It is important to note that these are only estimates, and the actual sales figures may vary. Inspired Entertainment does not disclose its customer segment sales in its financial statements.

Additional Information

In addition to the three main customer segments listed above, Inspired Entertainment also has a small business-to-business (B2B) segment. This segment provides gaming systems and services to other gaming companies. The B2B segment accounted for approximately 1% of the company's revenue in 2021.

Value Proposition of Inspired Entertainment

Inspired Entertainment is a leading provider of gaming content and technology to the regulated gaming industry. The company's value proposition is based on its ability to deliver:

• Innovative and engaging gaming content: Inspired Entertainment is known for its innovative and engaging gaming content, which includes a wide range of slot machines, table games, and interactive games. The company's games are designed to appeal to a wide range of players, from casual to experienced gamers.
• Best-in-class technology: Inspired Entertainment's gaming technology is best-in-class and provides a seamless and immersive gaming experience for players. The company's technology is constantly being updated to ensure that it is always at the forefront of the industry.
• Wide-reaching distribution network: Inspired Entertainment has a wide-reaching distribution network that ensures that its games are available to players in a variety of markets around the world. The company's games are available in over 30 countries and are played by millions of players every day.
• Commitment to responsible gaming: Inspired Entertainment is committed to responsible gaming and has implemented a number of measures to protect players from gambling-related harms. These measures include setting responsible gaming limits, providing player education resources, and working with organizations that provide support to problem gamblers.

Benefits of Partnering with Inspired Entertainment

There are a number of benefits to partnering with Inspired Entertainment, including:

• Access to innovative and engaging gaming content: By partnering with Inspired Entertainment, you will have access to the company's innovative and engaging gaming content, which can help you to attract and retain players.
• Best-in-class technology: Inspired Entertainment's best-in-class technology will provide your players with a seamless and immersive gaming experience. This can help you to increase player satisfaction and loyalty.
• Wide-reaching distribution network: Inspired Entertainment's wide-reaching distribution network will ensure that your games are available to players in a variety of markets around the world. This can help you to grow your business and reach new customers.
• Commitment to responsible gaming: Inspired Entertainment's commitment to responsible gaming can help you to protect your players from gambling-related harms. This can help you to build trust with your players and create a positive gaming environment.

If you are looking for a partner that can provide you with innovative and engaging gaming content, best-in-class technology, and a commitment to responsible gaming, then Inspired Entertainment is the right choice for you.

Risks Associated with Inspired Entertainment, Inc.

Inspired Entertainment, Inc. (NASDAQ: INSE) is a leading provider of gaming content, technology, and hardware. The company operates in over 30 countries worldwide and its products are available in over 100,000 locations.

While Inspired Entertainment is a well-established company with a strong track record, there are a number of risks associated with investing in the company. These risks include:

• Competition: The gaming industry is highly competitive, and Inspired Entertainment faces competition from a number of large and well-established companies. This competition could make it difficult for Inspired Entertainment to grow its market share and maintain its profitability.
• Regulatory changes: The gaming industry is subject to a number of regulations, and changes in these regulations could have a negative impact on Inspired Entertainment's business. For example, if the government were to increase taxes on gaming, it could make it more difficult for Inspired Entertainment to compete with its rivals.
• Economic downturn: A downturn in the economy could lead to a decrease in demand for gaming products and services. This could have a negative impact on Inspired Entertainment's revenue and profitability.
• Technology disruption: The gaming industry is constantly evolving, and new technologies are emerging all the time. If Inspired Entertainment is not able to keep up with these changes, it could lose market share to its rivals.
• Financial risk: Inspired Entertainment has a high level of debt, which could make it vulnerable to financial distress if the company's business performance declines.

Overall, Inspired Entertainment is a well-established company with a strong track record. However, there are a number of risks associated with investing in the company, and investors should carefully consider these risks before making an investment decision.

Additional Risks

In addition to the risks listed above, Inspired Entertainment also faces a number of other risks, including:

• Intellectual property risk: Inspired Entertainment's products and services are protected by a number of patents and trademarks. However, there is always the risk that these intellectual property rights could be challenged or invalidated.
• Operational risk: Inspired Entertainment's business is subject to a number of operational risks, such as disruptions to its supply chain or manufacturing facilities.
• Reputation risk: Inspired Entertainment's reputation could be damaged by a number of factors, such as a product recall or a data breach.

Investors should carefully consider all of these risks before making an investment decision.