In a huge move, Betsson Group has bought out Gaming Innovation Group’s (GiG) B2C businesses. At the moment, its Business to Consumer operation brands include names such as Rizk, Guts, Kaboo, and Thrills. Now, Betsson will own and operate these online casinos. Currently, under GiG, the casinos operate under the UK, Malta, Sweden, and German licenses. However, Rizk will soon go live under Spain and Croatia licenses.
Betsson has now bought out Secure Gaming, a GiG subsidiary. This means that all areas, including the business activities, technology, assets, operations and gaming licenses of these brands will all go to Betsson. This is a hugely significant move for Betsson as it will increase its strength in the biggest markets with gamified casinos that diversify its product appeal. It will also have more access to the Spanish and Croatian markets, which are said to grow rapidly as well.
But that’s not all. Indeed, Betsson will now be able to combine its own sportsbook with the GiG platform. As such, it can now offer its technology to possible B2B GiG clients.
Ultimately, Betsson aims to outgrow the market. It intends to do this organically as well as by acquisition. Now, through this deal, the company has proved that it is a market leader when it comes to consolidation. The Founder of Betsson, Pontus Lindwall, believes that this new deal is a “good opportunity to consolidate”. He further believes that they can use their main B2C skills and marketing skills to grow these new casinos to their full potential. It will also let them expand the outreach of its sportsbook and payment platforms too.
This deal certainly offers huge potential. In 2019, the acquired business had revenue of €77 million. Also, EBIT was worth £6.36 Million (€7.6 Million).
Currently, the initial consideration for a buyout is £18.66 Million (€22.3 Million).
Furthermore, Betsson and GiG have entered into a platform service agreement deal for 2.5 years minimum to host these new brands on GiG’s platform. Further costs will be based on the success of these first 2 years of revenue. They expect to finalize the deal in mid-April 2020.