GiG enters Buenos Aires in comprehensive Grupo Slots supply deal
Malta-based supplier to capitalise on emerging online market with platform, sportsbook and data deal
Gaming Innovation Group (GiG) has entered the regulated gambling market in the Argentinian capital of Buenos Aires through an all-encompassing supplier contract with Grupo Slots.
San Luis-based Grupo Slots provides gambling in more than 20 locations across the South American country, where it operates casinos, bingo and lottery as well as online gaming on the Jugadon.com domain.
GiG has struck a deal for a minimum of four years to provide the Latam giant with a full online gaming solution, including platform, sportsbook, front-end development and a data platform.
The contract includes an automatic extension for one additional year and is based on a rev share model in combination with fixed set-up fees.
The duo should sign the final agreement before Q3 2020, while Grupo is still awaiting its official licence from the province of Buenos Aires, expected to materialise later in 2020.
GiG anticipates the licence award will arrive in Q4 of 2020 with a positive revenue contribution from 2021 onwards.
GiG CEO Richard Brown
GiG CEO Richard Brown said: “I am extremely excited to partner with and onboard Grupo Slots.
“We see a great potential in the regulated environments within Argentina as that market is in the early transformation from offline to online gambling.
“To partner with one of the largest and premier land-based operators in the market is a great opportunity to showcase our product in the Latam market, while delivering the platform for online gambling transformation for Grupo Slots,” he added.
H2 Gambling Capital estimates the total gambling market in Argentina to be worth €352m, while just 7% currently has online capacity, signalling a serious opportunity for digital growth.
Grupo Slots general manager Juan Ignacio Torres said: “We are extremely pleased to have reached this agreement with a company like GiG, an international company with extensive experience, which demonstrates a high level of seriousness and excellence in the field of online gaming.
“On our part, we also contribute 35 years’ of experience, innovation, infrastructure and knowledge of the Argentine gambling market, currently being one of the few operators with online gaming presence.
“This agreement complements us and gives us a tool of quality and excellence to continue growing in this market with so much future potential.”