Posted on: April 4, 2022, 09:39h.
Last updated on: April 4, 2022, 09:39h.
Gaming Innovation Group is solidifying its ownership of sports betting platform provider Sportnco. The two have completed the deal as Sportnco continues to expand its online footprint.
Last December, Gaming Innovation Group (GiG) announced that it would purchase online sports betting platform provider Sportnco. It expanded GiG’s ability to be a well-rounded iGaming B2B supplier. The acquisition is complete, according to an announcement by GiG, and is already paying off.
GiG On Track for Global Expansion
GiG has been actively pursuing different avenues of expansion over the past year. It has established new partnerships in Germany and other countries and has also sought acquisitions that could bolster its portfolio.
Adding Sportnco, with its network of 30 partners in Europe and Latin America, will give it another boost. GiG sees significant potential in the company, agreeing to a purchase package worth €51.3 million (US$56.7 million).
Of that amount, €27.8 million (US$30.53 million) is a cash payment. Additionally, GiG included company shares worth €23.5 million (US$25.8 million). However, Sportnco is still on the hook for €18.6 million (US$20.42 million) it has in outstanding loans.
GiG didn’t go after Sportnco alone. The deal included support from SkyCity, which invested €25 million (US$27.45 million) in GiG last December. In return, SkyCity received almost 13.5 million GiG shares.
Sportnco won’t be able to turn the new GiG shares into cash for at least six months. That’s the length of a freeze put in place against their sale. However, it’s a small risk for a potentially larger payout. If GiG and Sportnco continue to beat expectations this year and next, Sportnco shareholders could receive an additional €11.5 million (US$12.62 million) a year.
Last year, GiG continued to show significant company growth. Its full-year revenue was 28% higher than a year earlier, reaching €66.8 million (US$75.8 million).
New Expansion Efforts Arriving
As GiG continues to conquer new targets in Europe and North America, it will benefit even more from Sportnco’s footprint. That’s already taking place through a new deal that arrived almost at the same time the two were finalizing the contract.
Last week, Sportnco entered into a new agreement with Betway. The partnership will see the platform provider service Betway’s operations in Portugal, which it manages under the GM Gaming brand.
GM Gaming and Sportnco already partnered for operations in France. However, Betway went a different route when it entered Portugal. Now, it is changing course once again by bringing in Sportnco.
Portugal’s online sports betting industry continues to impress. 2021 delivered year-on-year growth of over 32% as more sports events became available. New restrictions on live odds may constrict some growth going forward, but there is still plenty of action drawing interest.