New Zealand’s SkyCity Entertainment has agreed to invest €25 million (US$23.3 million) in Gaming Innovation Group (GiG0) that will help finance the latter’s acquisition of sports betting platform provider, Sportnco.
GiG has offered €50.8 million, with EUR23.5 million in GiG shares and €27.3 million in cash. In addition, GiG will assume €19.2 million of Sportnco debt, according to Asia Gaming Brief.
GiG and Sportnco will be licensed in 25 markets, with some 55 clients with Sportnco presence a complement to GiG. The acquisition creates attractive commercial, operational, and technological synergies, along with cost savings. Sportnco expects revenues exceeding €9 million in 2021.
“We are excited that SkyCity is expanding its strategic partnership with the GiG team,” said SkyCity CEO Michael Ahearne. “GiG is an established online operator who we have come to know well since partnering in mid-2019 to launch the SkyCity Online Casino.
“The partnership has provided SkyCity with access to a complementary and high-growth gaming category and has enabled us to pursue an omnichannel strategy. The combined business will be licensed or certified in over 20 jurisdictions, including growth markets such as the U.S., Canada and Latin America.”
GiG CEO Richard Brown was happy to partner with SkyCity, a respected operator in the land-based segment of the industry. “Both companies’ outlook and focus around the ever-evolving digitalization of gambling is expected to enable strategic gains, with GiG benefiting from decades of retail experience to fine-tune our offering and SkyCity benefiting from first-hand digital experience that GiG holds.”
