Online poker room Spartan Poker was purchased by MetaVerse and gaming tech startup OneVerse for an undisclosed sum.
As stated in a press release, OneVerse said that this is an extension of their M&A strategy aimed at consolidating the gaming market. It further stated that the company is hoping to close a few more $120 million acquisitions in the next three months as a result of the recent macroeconomic headwinds, which have created momentum for M&A opportunities.
Spartan Poker’s founder and CEO Amin Rozani said, “…This acquisition opens up new horizons for creativity and technological advancements, and we look forward to creating extraordinary customer gaming experiences together.”
This news comes six months after Spartan Poker laid off 125 workers, or 40% of its workforce, over the government’s 28% real-money gaming company GST.
One of the biggest online poker rooms in India is Spartan, with over 2 million registered players. Moreover, it has not yet raised venture capital.
Although Spartan reports having made Rs 200 crore in revenue, its consolidated financial statements filed with the RoC indicate that it actually made Rs 95 crore in FY23 and lost Rs 6.21 crore during that same period.
The Indian government’s 28% GST rule, which went into effect in October of last year, seems to be the main force behind the consolidation. Since then, MPL and Hike Rush Gaming have collectively fired more than 400 employees, while a number of startups, including Fantok, One World Nation (OWN), and Quizy, have closed their doors.
The GST crackdown also had a significant effect on Dream11, the biggest player in the market. The company announced an 80% decline in profits for the current fiscal year and closed its investment arm, Dream Capital.
