GiG acquires majority stake in Croatian operator ahead of 2020 launch
Operator to expand B2C business into Croatian market under partnership model
Gaming Innovation Group (GiG) has agreed a deal to acquire a 75% stake in Croatian gaming company Top Games to support the operator’s Croatian market entry in H1 2020.
Under the terms of the agreement, GiG will acquire 75% of the Top Games business, with the remaining 25% being retained by Top Games’ owner which has a successful history in land-based casino businesses.
Payment for the acquisition is solely based on the contribution of GiG to the business and no cash will be paid.
The two companies will form a collaborative partnership model, under which both parties will co-operate in the ongoing operation of the business.
GiG will provide brand rights, a gambling platform and operational expertise to the company with Top Games meeting the initial costs of expanding the business into the online market. Top Games is currently licensed to operate egaming in the Croatian market.
Malta-based GiG said it will use this partnership as a springboard to launch online casino operations during the first half of 2020.
It expects a “moderate” impact on group revenues during the second half of 2020, with an increased contribution to revenues during the first half of 2021.
GiG acting CEO Richard Brown said he was excited by the opportunity of expanding the firm’s B2C business into the Croatian market.
At present, the Croatian market has six licensed online casinos, including Top Games, with local authorities blocking the IP’s of offshore and unlicensed operators.
“This is a good opportunity to showcase the strength of our online casino offering and our passion for providing end users with a safe, responsible and competitive online gambling experience,” Brown added.
The total gross gambling win in Croatia is estimated to be at least €360m by 2020. Under current laws, player winnings under Kn10,000 (€1,300) are subject to a 10% tax.
Earlier this week, GiG announced several new hires in its sportsbook arm as it aims to build a “tier-one sportsbook operations team” under new sportsbook director Stuart Weston.