Gaming Innovation Group enters the regulated Croatian online casino market by acquiring a majority stake in a local operator.
GiG announced that it has entered into an agreement to purchase a 75% stake in the Croatian company Top Games doo, which owns the license to provide online gambling services in Croatia.
GiG said the recently signed purchase agreement will provide market access to one of its own brands. The deal is based on a partnership model and will enable GiG to enter a new and rapidly growing regulated market, thereby expanding its international presence.
The company explained that it will acquire 75% of Top Games’ shares, while the remaining 25% will remain with the local partner of the company. Top Games has a successful track record in local land-based casinos.
Payment for the latest acquisition of GiG is based on the contribution of resources by the company’s investors and does not include cash. New Croatian partner GiG will pay the upfront costs of the deal, while the Malta-headquartered gambling group will provide the rights to use one of its own brands, as well as a gambling platform and expertise in online gambling services. …
Expected market entry in the first half of 2020
Following the close of the acquisition, which is subject to regulatory approval, it is expected that we will be able to enter the Croatian online casino market in the first half of 2020.
The company said its entry into this new jurisdiction will have a moderate impact on its revenues in the second half of 2020. However, the company believes that revenue from operations in Croatia will grow from the first half of 2021.
Commenting on the news, GiG Acting CEO Richard Brown said:
We are delighted to further expand our B2C business by entering a new regulated jurisdiction. Croatia is a very interesting market and entering this country is in line with our strategy to develop our own brands in regulated markets with high potential.
In addition to expanding its presence in online casinos, GiG has also entered new markets with the online sports betting business over the past year. The company pays special attention to strengthening the position of bookmaker rates in the United States.
We reported at casinoz that earlier this year, the company introduced sports betting in New Jersey alongside the Hard Rock Hotel & Casino Atlantic City. In September, casino parent company Hard Rock International and GiG announced their expansion outside Garden State.
The casino operator has expanded its GiG-operated OTC sports betting offerings at its Hard Rock Hotel & Casino Sioux City in Iowa to enter the state’s newly opened betting market. GiG and Hard Rock also announced plans to launch online and mobile sports betting in Iowa.