Gaming Arts' Strategic Expansion into Land-Based Markets via Inspired Entertainment

The gaming industry is undergoing a transformative phase as iGaming and land-based markets increasingly converge, creating new opportunities for operators to diversify revenue streams and enhance player engagement. Gaming Arts LLC's recent partnership with Inspired Entertainment, Inc. to adapt the latter's top-performing online slot titles for land-based markets represents a strategic move to capitalize on this trend. By leveraging Inspired's digital expertise and Gaming Arts' deep roots in traditional gaming, the collaboration aims to bridge the gap between online and physical gaming experiences, positioning both companies to benefit from the complementary growth dynamics of these sectors.

Market Convergence: A Win-Win for Operators

The convergence of iGaming and land-based markets has proven to be mutually reinforcing rather than competitive. A 2023 Sports Betting Alliance study found that in states with legal iGaming, total gaming revenue (online and land-based) increased by an average of 46% compared to pre-legalization levels. For instance, the study noted Pennsylvania's combined market grew from $3 billion before iGaming to over $5 billion after its introduction in 2019, even accounting for pandemic-related disruptions. Similarly, the same study projected that iGaming could add $224 million in land-based revenue for Maryland by 2029, with the combined market expanding by 91% from $2 billion in 2024.

This synergy is further underscored by the American Gaming Association revenue tracker, which reported a 9.8% year-over-year increase in U.S. commercial gaming revenue in Q2 2025, reaching $19.44 billion. While land-based gaming revenue grew by 2.8%, iGaming surged by 32.2%, and sports betting by 20.6%. Notably, the tracker indicated iGaming revenue in New Jersey now exceeds land-based casino revenue, and the two are nearly equal in Pennsylvania. These figures highlight a critical insight: iGaming is not cannibalizing land-based revenue but expanding the overall market by attracting new players and enhancing existing ones' spending habits.

Strategic Partnership: Bridging Digital and Physical Gaming

Gaming Arts' collaboration with Inspired Entertainment is a calculated step to harness this convergence. By adapting Inspired's top-performing online slot titles for land-based deployment in North and South America, Gaming Arts is introducing digital-first content into physical venues such as slot machines and video lottery terminals, according to Gaming Arts LLC's announcement. This approach leverages Inspired's Q1 2025 report, which details a portfolio of 50,000+ gaming machines and 32,000 retail venues, while Gaming Arts' expertise in traditional gaming ensures seamless integration into jurisdictions where Class III or Route Operations are permitted (as noted in the partnership announcement).

The partnership is particularly timely given the growing demand for hybrid gaming experiences. According to a Buddy Magazine analysis, live dealer games now account for over 50% of table game play in most jurisdictions, and AI-driven personalization is enhancing player engagement across both online and land-based platforms. By bringing Inspired's digital innovations to physical locations, Gaming Arts is addressing the evolving preferences of players who seek both convenience and the social aspects of in-person gaming.

Long-Term Revenue Potential: A Data-Driven Outlook

While specific revenue projections for the Gaming Arts–Inspired partnership from 2025 to 2029 are not publicly available, broader industry trends and Inspired's recent financial performance offer compelling insights. Inspired's Q2 2025 results revealed a 45% year-over-year increase in its Interactive segment revenue to $13.6 million, driven by strong growth in the UK and North America. The company's land-based segment, which accounts for 71% of its 2024 sales, is recognized for consistent cash flow, while its digital segment is projected to contribute 60% of total EBITDA by 2025, according to a B. Riley note.

Analysts suggest that Inspired's land-based expansion could mirror the success of iGaming markets. For example, the Sports Betting Alliance study's Maryland projection indicates that cross-channel strategies can significantly boost brick-and-mortar performance. If Gaming Arts and Inspired replicate this model in other states, such as Illinois or Texas-where gambling expansion is under consideration, as noted in a PureSoftware briefing-they could unlock substantial incremental revenue.

Risks and Considerations

Despite the optimism, challenges remain. Regulatory hurdles in certain jurisdictions, such as restrictions on route operations in Illinois and Oregon, could limit the partnership's reach (see the Gaming Arts LLC announcement). Additionally, the land-based segment's slower growth compared to iGaming (2.8% vs. 32.2% in Q2 2025) suggests that Gaming Arts must balance innovation with cost efficiency. However, the integration of cross-channel marketing-such as BetMGM's 11.5% increase in cross-selling between online sports betting and iGaming, noted in the Buddy Magazine analysis-offers a blueprint for maximizing synergies.

Conclusion: A Strategic Bet on Convergence

Gaming Arts' partnership with Inspired Entertainment is a forward-looking strategy to navigate the evolving gaming landscape. By adapting digital content for land-based markets, the companies are not only diversifying revenue streams but also enhancing player engagement through innovative, hybrid experiences. With the U.S. commercial gaming industry projected to maintain its upward trajectory (per the Buddy Magazine analysis) and the convergence of iGaming and land-based markets proving mutually beneficial (per the Sports Betting Alliance study), this collaboration is well-positioned to deliver long-term value. For investors, the key takeaway is clear: the future of gaming lies in integration, and Gaming Arts is betting big on that vision.