GiG share price slides on terminated media deal
Malta-based supplier cancels contract with European media group after it revealed preference for white-label model
Shares in Gaming Innovation Group (GiG) sank by more than 5% in early trading on the Oslo Stock Exchange after it pulled out of a deal with an unnamed European media group.
The Malta-based supplier decided to terminate the agreement first reached in December 2020 after the media group made plans to operate via a white label agreement, instead of its own licence.
Since 2019, GiG has moved to distance itself from white-label contracts under chief executive Richard Brown due to the regulatory risks and expense associated with the model.
As of Q4 2020, GiG had three remaining white-label partners in play. However, all three had committed to switching to the supplier’s preferred SaaS model.
The one exception is New Zealand-based casino operator Sky City, which remains on a white-label structure with GiG due to the regulatory environment in the country.
GiG said the termination of the European media deal would not impact the company’s financial forecasts or long-term targets, although the stock market remains unconvinced.
Brown said: “The change in strategy has led to an impasse for us to move forward together.
“While unfortunate to terminate this agreement, we wish them well and we continue to move forward on a multitude of our own opportunities,” he added.