Online gambling company Gaming Innovation Group is set to enter Croatia’s regulated online casino market through the acquisition of a majority stake in a locally licensed operator, it emerged on Tuesday.
GiG said it has entered into an agreement to purchase 75% of the shares of Croatian company Top Games d.o.o., which holds a license to provide online gambling services on the territory of Croatia.
GiG said that the recently inked purchase agreement would provide market access to one of its in-house brands. The deal is based on a collaborative partnership model and will see GiG enter a new and rapidly growing regulated market, thus expanding its international footprint.
The company explained that it would acquire a 75% stake in Top Games, while the remaining 25% will be retained by the company’s local partner. Top Games has a successful track record of operating brick-and-mortar casino businesses.
The payment for GiG’s latest acquisition is based on contribution of resources by company investors and does not involve cash being paid. GiG’s new Croatian partner will upfront initial costs related to the deal, while the Malta-headquartered gambling group will provide rights for use of one of its in-house brands as well as a gambling platform and expertise in the provision of online gambling services.
Expected Market Entry in H1 2020
GiG said that following the closure of the acquisition deal, which is subject to regulatory approval, it expects to be able to enter the Croatian online casino market in the first half of 2020. The company said that its entry into that new jurisdiction will have moderate impact on its revenues for the second half of 2020. However, it believes that revenue from its Croatian operation will see an accelerated growth from the first half of 2021.
Commenting on Tuesday’s announcement, GiG’s acting CEO, Richard Brown, said that they are excited to further expand their B2C business by entering a new regulated jurisdiction. The gambling executive added that Croatia is a “very interesting marketplace” and their entry into that country is in line with their strategy to “grow our own brands in high potential and regulated markets.”
Aside from growing its online casino presence, GiG has also been venturing into new markets with its online sports betting business over the past year. The company has been particularly focused on growing its US athletic gambling foothold.
Early this year, it launched its sportsbook in New Jersey with Hard Rock Hotel & Casino Atlantic City. In September, the casino’s parent company, Hard Rock International, and GiG announced that they have extended their partnership beyond the limits of the Garden State.
The casino operator added a GiG-managed over-the-counter sports betting operation at its Hard Rock Hotel & Casino Sioux City in Iowa to tap into that state’s newly opened wagering market. GiG and Hard Rock also revealed plans to launch an online and mobile sportsbook in Iowa at some point in the fourth quarter of the year.
Source: Gaming Innovation Group to enter the Croatian market through majority share acquisition, GiG.com
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