Posted in Industry March 12, 2020
GiG Ships off Several of its Casino Assets to Betsson
Gaming Innovation Group (GiG), a major platform services provider for casino operators, has agreed to sell some of its casino assets to Betsson Group. The deal is estimated to be worth €50 million over the next two years. As part of the agreement, GiG will transfer several of its well-known brands, including Kaboo, Rizk, Guts, and Thrills, to Betsson.
Under the terms of the deal, Betsson will pay €22.3 million in cash for the acquisition, as well as a prepaid platform fee of €8.7 million. Betsson is required to keep all four brands operational on GiG’s platform for a minimum of 30 months. During the first 24 months, Betsson will also have to pay a platform fee based on their net gambling revenue. The transaction is expected to be finalized by April 2020, pending approval from regulatory bodies.
GiG plans to use the proceeds from this sale to repay its SEK 300 million bond loan, which is set to expire in 2020. The company’s decision to divest its B2C business is part of its strategic shift that began in November. GiG aims to focus on driving and growing its B2B business, taking advantage of the expanding iGaming industry and the digital transformation of the global gambling market. GiG also plans to upgrade its platform and collaborate with other betting technology software providers to offer top-notch solutions to its clients.
Meanwhile, Betsson sees this deal as an opportunity to consolidate its position, improve synergies, and apply its core B2C skills and marketing insights to maximize the potential of the acquired assets. The acquisition strengthens Betsson’s outreach and growth potential for its proprietary sportsbook and payments platforms in the B2B market. GiG CEO Richard Brown views this transaction as a strategic focus on the B2B segment, allowing the company to provide cost-saving synergies and integrate Betsson’s well-renowned sportsbook into its platform offering.
As a result of this deal, new features and enhancements may be introduced to the newly-acquired Betsson casinos, including new software providers, games, payment methods, and more.
