Betsson Strike Deal with GiG to Land Casino Brands
by Glenn Baird - February 14, 2020
Gaming Innovation Group (GiG) have announced today that they have sold the casino brands, Thrills, Rizk, Kaboo and Guts to the Betsson Group in a deal reported to be worth 31m Euros.
The deal will see Betsson retain the current GiG platform for a minimum of 30 months, during with Betsson will pay a premium platform fee for the first 24 of those months. With those additional fees brought to light it is estimated that the deal could end up being worth 50m Euros.
A spokesperson for GiG made the following statement on the deal this morning:
“The sale of the B2C vertical is a result of GiG’s strategic review, initiated in November 2019, leading to an evolved strategic direction to reduce complexity and improve efficiency.
“By divesting the B2C vertical, GiG will free up resources, enabling full dedication on driving and growing its B2B business, securing stable and sustainable earnings and profit margins. GiG sees a large and sustainable addressable market for its platform business as the regulation of the iGaming industry continues and is well positioned with the omni-channel platform offering to capitalise on the continued digital transformation of the worldwide gambling market.”
Pontus Lindwall, Chief Executive Officer of Betsson AB, said: “We believe this deal offers a good opportunity for Betsson to consolidate, create synergies and apply our core B2C skills and marketing insights to scale these assets to their true potential.”
“The agreement with GiG further strengthens and expands Betsson’s outreach and growth potential for its proprietary sportsbook and payments platforms in the B2B market.”
“Betsson has significantly invested in the development of its sportsbook and now delivers a powerful offering. A key strategy is to grow our sportsbook with B2B customers and I am excited to collaborate with GiG as a distribution channel. We share the same passion for sports betting and providing a player environment which is unique, entertaining and safe.”
Chief Executive of Gaming Innovation Group, Richard Brown said: I am very excited about this transaction as it provides multiple upsides to GiG. While putting the Company in a financially sustainable position, it gives us the ability to focus on where we see real long term shareholder value.”
“This transaction serves as a strategic focusing of the Company’s efforts towards the B2B segment. Offering both B2C and B2B services had synergies in the past, however, the current conflicting priorities of the two business areas, and increased complexity in the market, have lessened the potential offering on both fronts and our ability to sign new customers.”
“I am delighted to retain our brands on the platform and in the process, adding Betsson as a partner as we share the same ambition of responsibility for all stakeholders, safe play for the end user, and an entertaining user experience. I am certain that together with their speciality, focus and strong track record on driving B2C growth, it will be a fruitful partnership.”
“Additionally, the planned integration of Betsson’s sportsbook into our platform offering, not only provides cost saving synergies, it also allows us to offer one of the most well-renowned European sportsbooks to our current and future B2B partners. We are excited to support Betsson’s growth of the brands we have built and now look forward to GiG next chapter as a specialist iGaming B2B provider.”
There appears to be nothing to suggest changes for players with accounts at any of GiG’s current casinos, with the deal maintaining much of the status quo for the foreseeable future.