The Swedish listed Gaming Innovation Group who are known for operating online casino brands such as Guts Casino and Rizk online casino, have this morning announced to the Swedish stock market, the disposal of all their B2C ( Business 2 Customer ) online casinos, to the Betsson Group, in a deal initially worth €31m.
The sale of their remaining online casino brands, follows that of the sale of their High Roller casino back in August last year, to Ellmount Gaming Limited. GiG have further confirmed that the proceeds generated from the sale to Betsson of Guts, Rizk, Thrills and Kaboo, will be used to pay back the company’s the company’s SEK300 million 2017 – 2020 bond.
GiG have put a positive spin on the sale of their online casinos, with Chief Executive, Richard Brown, commenting: “I am very excited about this transaction as it provides multiple upsides to GiG. While putting the Company in a financially sustainable position, it gives us the ability to focus on where we see real long term shareholder value.”
“This transaction serves as a strategic focusing of the Company’s efforts towards the B2B segment. Offering both B2C and B2B services had synergies in the past, however, the current conflicting priorities of the two business areas, and increased complexity in the market, have lessened the potential offering on both fronts and our ability to sign new customers.”
“I am delighted to retain our brands on the platform and in the process, adding Betsson as a partner as we share the same ambition of responsibility for all stakeholders, safe play for the end user, and an entertaining user experience. I am certain that together with their speciality, focus and strong track record on driving B2C growth, it will be a fruitful partnership.”
“Additionally, the planned integration of Betsson’s sportsbook into our platform offering, not only provides cost saving synergies, it also allows us to offer one of the most well-renowned European sportsbooks to our current and future B2B partners. We are excited to support Betsson’s growth of the brands we have built and now look forward to GiG next chapter as a specialist iGaming B2B provider.”
With the company now focusing on their B2B product offerings, outside observers could have formed the impression that GiG were forced to sell to ensure that they remain a going concern. Especially considering the bond they had taken out, which is due to be paid back during this year.
