GameCo, the supplier that pioneered arcade-style, skill-influenced slot games, announced a new round of financing only a month after founder and former CEO Blaine Graboyes was denied licensing in Nevada and resigned from the company.
The financing is led by new investment from prominent gaming technology company Playtech and gaming investor SpringOwl Asset Management, headed by industry mainstay Jason Ader, with participation from many of GameCo’s previous investors.
The capital infusion is designed to accelerate the company’s mission to provide skill-influenced gaming products targeted at younger gamblers. It comes on the heels of the appointment of Adam Rosenberg as GameCo’s new CEO, announced two weeks ago. Rosenberg will be joining GameCo full-time from Fortress Investment Group LLC, where he has been responsible for investments made across the capital structure in the gaming and leisure sector globally.
Alongside the fund-raise, GameCo has also entered into a long-term distribution agreement with Playtech to commercialize GameCo’s iGaming products globally. The agreement provides GameCo with immediate access to Playtech’s extensive network of hundreds of online casino brands, “which will bring arcade-style gaming to the next generation of customers,” according to a press release.
Under the terms of the agreement, GameCo will have direct access to build iGaming products on Playtech’s next-generation Gaming Platform as a Service (GPAS) system and leverage Playtech’s advanced technology and extensive distribution footprint. Playtech’s GPAS technology provides GameCo with a full-featured iGaming development tool suite, which will allow GameCo to bring its unique genre of arcade-style games to regulated online gaming markets worldwide.
While the pandemic created significant challenges for the entire land-based casino industry, GameCo channeled its resources during the 2020 casino shutdowns into further evolving and expanding its offerings in the digital realm. In addition to increasing its footprint with new land-based titles, GameCo has been building a diversified iGaming portfolio of game offerings.
In August, GameCo launched its iGameCo brand to capitalize on the exploding online, mobile and esports betting industries. The company has also formed an alliance with GRID, which aims to make official esports data available in the U.S. market as regulation is progressing and esports has been identified as a growth driver.
“GameCo was founded with the intention of attracting and monetizing younger gamers and gamblers who, unlike older generations, want interactive and varied digital gambling experiences both at casinos and from the comfort of their homes. Covid-related shutdowns and the need for large portions of the global population to be remote accelerated these trends,” said Rosenberg.
Robert Montgomery, GameCo board chairman, added, “We continue to see a real opportunity to combine the excitement of mobile apps and video games with the thrill of gambling to capture these customers. The online gambling space represents an enormous opportunity for GameCo to capitalize on mobile-native Gen X and millennial players—core constituents within the digital gaming and esports industries.
“We’re thrilled to bring on board new investors like Playtech and SpringOwl, who represent the best-of-the-best in strategic financiers, to help us advance these exciting business initiatives.”
In 2021, GameCo plans to expand rapidly into digital markets, with a focus on bringing its arcade-style gambling to online casinos worldwide and positioning itself as a leader in esports betting in the U.S. The new funding will be used to develop new game titles and expand the scope of its online, esports betting and retail businesses.
GameCo plans a portfolio featuring dozens of iGaming products released yearly with a focus on attracting and monetizing a new and differentiated player. GameCo is currently licensed in more than 30 jurisdictions globally, including New Jersey, the largest iGaming market in North America.
The distribution relationship with Playtech provides GameCo with iGaming distribution in dozens of markets across Europe, Latin America, and North America—including the rapidly expanding U.S. market. Playtech CEO Mor Weizer said, “We have followed GameCo’s progress for some time and have been very impressed with its innovative and creative content. GameCo’s expansion into digital markets comes during a period of great industry growth and potential.
“Today, players at U.S. online casinos alone spend over 30 million minutes daily playing games. GameCo’s entry into the regulated iGaming market is extraordinarily well timed, and we are delighted to be supporting its growth with our investment and our platform.”
Ader, CEO of SpringOwl, added, “There are very few market segments which are completely global, totally consumer-facing and instantly scalable. The intersection of skill and gambling online is rapidly emerging as a massive opportunity, and GameCo is uniquely positioned as one of the most innovative players in the industry.
“SpringOwl is always looking to invest in the next generation of trailblazers, and we believe GameCo is exactly that for the regulated gaming industry. I have no doubt that this funding will open many doors for GameCo and its exceptional team, who are innovating at a rapid pace to bring a distinct change to the casino experience and attract the next generation of players.”
