From slot machine manufacturer to casino operator: How the Merkur Group is redefining the casino business

Ulli Schmitt
ISA-GUIDE Inhaber
E-Mail: ulli@isa-guide.de


Merkur Group

When the Merkur Group began to engage in the traditional casino business more than a decade ago, few in the industry expected it to become a serious player operating nationwide and internationally. Although the Merkur brand had long been firmly established in the commercial slot machine industry, the state-regulated, concession-based casino industry was considered a separate, isolated system – politically sensitive, organizationally complex, and economically challenging. This makes the path that Merkur has taken since then all the more remarkable. Today, the group operates or is responsible for casinos in several German states, has its own casinos in the UK, and has established itself in a market that was long considered virtually inaccessible.

This ISA GUIDE series tells the story of this development – not as a company chronicle, but as an industry story. It shows how initial steps became a strategic course, how individual locations developed into a network, and how a medium-sized family business has asserted itself in a highly regulated world. The focus is on casinos—and on the question of what it means when a new player enters a market steeped in tradition.

The beginning: Saxony-Anhalt as a testing ground

MERKUR SPIELBANK Leuna
Photo: Merkur Group

The story does not begin in North Rhine-Westphalia, but in Saxony-Anhalt. By winning the casino license for this federal state, the Merkur Group laid the foundation for its current casino business. The starting point was the opening of the casino in Leuna-Günthersdorf – a location that was deliberately designed differently from many classic casinos. Modern architecture, a clear guest orientation, events, gastronomy, and a strong focus on service were intended to show from the outset that this was not simply a continuation of existing models, but a unique approach.

Leuna was more than just a single casino. The location served as a laboratory for processes, technology, and organization. With additional casinos in Magdeburg and Halle, the presence in Saxony-Anhalt grew into a small but stable network. For Merkur, this meant one thing above all else: practical experience. In a state-regulated environment, with licensing requirements, player protection requirements, and regulatory oversight, the company was able to learn how a modern casino concept proves itself in everyday life.

In retrospect, this step was decisive. It gave the group credibility – with politicians, authorities, and also with the industry itself. What was to follow later on a larger scale had its origins here.

Investments, rough seas, and first international steps

The first casinos were followed by further building blocks. Merkur acquired stakes in existing casinos in Berlin and Rhineland-Palatinate and expanded its activities beyond traditional locations – for example, to cruise ships. This phase was characterized by cautious growth, partnerships, and learning about different concepts.

Its presence at sea in particular – far away from traditional national borders, but subject to strict international regulations – showed that Merkur was ready to break new ground. Here, too, the focus was less on short-term profits and more on know-how, operational experience, and understanding how guests react to casino offerings in different environments.

At the same time, a bigger step was maturing in the background. The casino market in Germany was in flux, with several federal states at different stages of privatizing their state-owned casinos. For Merkur, this was an opportunity to step out of the role of newcomer.

The breakthrough: North Rhine-Westphalia as a beacon

MERKUR SPIELBANK Hohensyburg Photo: Merkur Group

With the takeover of the former WestSpiel casinos in North Rhine-Westphalia, the ambitious project became a visible player. The locations in Aachen, Duisburg, Hohensyburg, and Bad Oeynhausen were among the best-known casinos in the state – steeped in tradition, but in many places also showing their age. For Merkur, North Rhine-Westphalia was not just another federal state, but a touchstone.

The takeover was politically and socially controversial. Trade unions, institutions, and parts of the public expressed skepticism about the privatization of a state-run service. In this situation, Merkur sent an early and clear signal that was intended to build trust by taking on all employees.

At the same time, an investment offensive began. Buildings were modernized, technology was renewed, and designs were revised. This change was particularly visible in Monheim, where a new building was constructed in a very short time, which is considered a beacon for the new casino style. Even listed buildings such as the Hohensyburg were carefully but consistently adapted to the new brand world.

NRW thus became a blueprint. This demonstrated Merkur Spielbanken's vision: as places of experience that go beyond pure gaming, as meeting places with gastronomy, events, and a clear service concept.

Looking beyond borders: Great Britain

While the integration of the NRW buildings was underway in Germany, Merkur took another step: expansion into Great Britain. With the opening of the first Merkur Casino in Aberdeen in 2023, the company began to establish its own casino brand in the United Kingdom. Two years later, the second location followed in Milton Keynes – a clear signal that this was not a one-off project, but a long-term strategy.

The British market is fundamentally different from the German market. Different regulations, different guest structures, a different competitive situation. For Merkur, entering this market meant one thing above all else: a willingness to embrace new conditions and further develop its own model. The UK casinos are not copies of German establishments, but independent concepts adapted to local expectations.

Overall, the expansion into the UK underscores that Merkur does not view its casino business as a purely national project. The group positions itself as an internationally oriented operator that is willing to invest outside its comfort zone.

The next milestone: Lower Saxony

With the acquisition of ten casinos in Lower Saxony in 2025, the Merkur Group reached another milestone in its development. The locations from Bad Bentheim to Wolfsburg, from Norderney to Göttingen form one of the largest contiguous casino networks in Germany. For Merkur, this step meant not only growth, but also a new dimension of responsibility.

Once again, the path of complete takeover of the workforce was chosen. Around 430 employees transferred to the new structure. For the casinos, this meant continuity – for Merkur, the task of integrating established teams into a new organizational environment. The collective bargaining negotiations, which began in early 2026, show how closely economic reality and social responsibility are linked in this business.

Lower Saxony is thus exemplary for the new phase of Merkur casinos: no longer the development of individual locations, but the management of large, regionally distributed networks.

A common thread: reliability and development

Merkur Spielbank Monheim, the logo is delivered to the construction site. Photo: Merkur Group

Looking back, one theme runs through all stages of this story: reliability and development. From Leuna to Milton Keynes, from Saxony-Anhalt to Lower Saxony, Merkur has repeatedly emphasized that investments are only sustainable if they are supported by stable structures and motivated employees.

The complete takeover of the workforce during operator changes, the visible investments in buildings and technology, the attempt to position casinos as modern places of experience – all of this follows a clear line. It is not about achieving short-term effects, but about establishing a business area in the long term.

 

Outlook for the series

Part 1 of this ISA-GUIDE series set the scene: from the first steps in Saxony-Anhalt to the breakthrough in North Rhine-Westphalia, international expansion, and the most recent takeover in Lower Saxony. In the following parts, we will take a closer look at the casinos themselves, the people who work there, the local management, and finally the strategic perspective.

Behind all these developments lies one central question: What does it mean when a new player enters a traditional system? The answer to this question can be found not only in figures and locations, but above all in the everyday life of the casinos.

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