Sega Sammy plans to enter the online gaming arena

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Video game company Sega Sammy plans to broaden its horizons and enter the online gambling market. [Image: Shutterstock.com]

From video games to online gambling

The online gambling market may soon have an attractive new operator offering services after a recent announcement from Sega Sammy. The Japanese video game company could switch to the iGaming business as part of a business improvement plan. Known for creating content for video games and consoles, the move would be a completely different format of operation for the company.

Video gamers know the company for its Sonic the Hedgehog character and games like Streets of Rage and Gunstar Heroes. Originally known as Sega, the company is now called Sega Sammy after merging with Sammy Corporation in 2004.

Sega Sammy’s investment plans

In recent second quarter financial results, Sega Sammy announced that the company plans to invest 100 billion yen ($ 8.7 million) to improve overall business. CEO Haruki Satomi said the company plans to use the funds in several ways, including enter the online gambling market.

Satomi said that over the next three years, opportunities may emerge in the domestic IR sector that may be of interest to the company.

if there are opportunities to invest massively in other areas… it is possible that we will prioritize them ”

“… in the meantime,” Satomi explained, “if there are opportunities to invest heavily in other areas, such as online betting, which are gaining strength abroad, it is possible that we hierarchies. “

Sega Sammy also plans to explore investment opportunities in non-fungible tokens (NFTs). The company is ready to use its experience in mergers and acquisitions if the right option presents itself.

Haruki has not proposed a specific region for potential investment, but it looks like the growing US market is a likely option for the company.

Disney and Twitter are also considering sports betting

Along with Sega Sammy, big companies like Disney and Twitter are interested in entering the gaming industry. In early November, Disney CEO Bob Chapek mentioned in a fourth quarter 2021 earnings call that the company was considering. to use its ESPN affiliate brand in the market.

During the call, the CEO said that Disney sees a huge opportunity in the sports industry. Chapek pointed out that ESPN + has seen a 66% increase in subscribers in the last fiscal year.

Research by Disney shows that adding sports betting to a subsidiary brand like ESPN would not harm its image, as it might have been in the past. Sports betting is more accepted today in the United States than it was just ten years ago.

This week, Twitter announced that it was considering sports betting as engagement grew in the NFL and college football industries. This football season, Twitter has seen significant growth in fan engagement related to users and American football. Members of the site are tweeting more about the NFL and college football games, which has prompted the social media company to consider gambling services.

US head of sports partnerships for Twitter, David Herman, has shown interest in bringing the company into the betting business. Twitter has been broadcasting live sporting events, but the company has now moved on to signing partnership deals that will work better for users.

One example is a partnership with Fox Sports. Twitter users can go online and select a camera angle to watch the first five minutes of their Big Noon Saturday game, a unique way for Twitter to deliver fan engagement.

Currently, Twitter has several agreements with sports companies but no official partner.

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