Admin Savvy Games Group recently agreed a deal with TikTok parent company, ByteDance, to purchase Moonton Games for $6 billion.
The move is a huge power play, considering Moonton is one of the biggest game developers in the world and has created popular mobile titles such as Mobile Legends: Bang Bang.
Since its official release in 2016, Mobile Legends: Bang Bang has racked up more than a billion downloads, making it one of the most successful games of all time.
Acquiring Moonton further expands Saudi Arabia’s vast gaming portfolio. The deal is only around a billion dollars short of what Microsoft paid to acquire Bethesda in 2021.
Saudi Continues to Take Over the Global Gaming Industry
Taking Moonton off ByteDance gives Saudi Arabia access to a massive global audience, especially in regions where mobile gaming is increasingly popular.
Mobile gaming is now the largest segment of the gaming market, and owning a major player in that space gives Saudi Arabia a powerful foothold in the future of entertainment.
The Moonton acquisition is part of a much larger plan. Savvy has significantly loosened its purse strings to acquire major studios and invest in key companies across the industry.
The gaming investment vehicle owned by Saudi Arabia’s sovereign wealth fund added Scopely to its portfolio three years ago, forking out a whopping $5bn to get the deal over the line.
Scopely is famous for creating hit titles such as Monopoly Go, but Savvy didn’t stop there. It also acquired Pokemon Go creators Niantic in a deal worth around $3.5bn last year.
When Saudi Arabia isn’t completing full takeovers, it’s purchasing shares in some of the most influential gaming companies on the planet.
As part of its grand scheme to dominate the global gaming industry, Savvy has invested in Nintendo, Capcom, Take-Two Interactive and Activision Blizzard.
The Kingdom is also working on a staggering $55bn deal to acquire Electronic Arts, one of the biggest publishers in the world.
If that happens, Saudi Arabia will control some of the most popular gaming franchises such as the critically acclaimed EA FC football game and other blockbuster titles.
Saudi Arabia’s Plan for World Domination Extend into the iGaming Sector
Saudi Arabia’s global investments are largely handled through its sovereign wealth fund, the Public Investment Fund (PIF).
The PIF has made significant strides in helping the country establish a rock-solid foothold in the global gaming industry. But its relentless pursuit of global recognition has raised several questions.
With Saudi Arabia making progress in gaming and eSports, how long until the country finally pays attention to the online gambling sector?
There are numerous online casinos in Saudi Arabia, but they operate under licenses issued in other jurisdictions. Saudi Arabis misses out on the tax revenues they generate.
However, Saudi Arabia may no longer be able to completely ignore the sector, especially as the country continues to expand its role in global gaming.
The global online casino industry is massive, generating billions of dollars in gaming revenue each year. Many major gaming companies also have ties to this sector either directly or through partnerships.
Combine that with the United Arab Emirates (UAE) laying out a blueprint for strict oversight for gambling activities, and the Kingdom may need reconsider its stance.
As Saudi-backed firms become more involved in international gaming markets, they will inevitably come into contact with this side of the industry.
Tapping into the vast possibilities of the iGaming world could also open Saudi Arabia to a huge customer base, which would be a massive game-changer for its economy.
Saudi Arabia is already considered a major player in the global gaming industry, but it may struggle to truly take over if it doesn’t find a way to establish some form of iGaming regulation.
Formulating a robust set of rules and oversight for international operators would be a solid first step. It would ensure that Saudi-linked companies align with global standards.
