GiG shelves sportsbook trading team amid strategic review
Supplier seeking to save €400k a month on sports with Norway-based pricing division to be disbanded
Gaming Innovation Group (GiG) will wind down its proprietary pricing and odds department as the firm looks to achieve monthly cost savings of €400k on sports.
In May’s Q1 financial results, GiG highlighted its sportsbook segment as a key area to save costs after a strategic review was initiated in 2019 to reduce the complexity of the business.
As part of the review, GiG is targeting a reduced headcount of 430 by the end of 2020, while the number of employees has already decreased from 695 to 594 year-on-year.
EGR Intel understands the Norway-based proprietary pricing team will be disbanded, while reductions have also been made across the sportsbook development arm. The firm’s Norway office is still open and will play host to employees in other departments.
The decision was made easier after GiG sold its portfolio of B2C brands to Betsson in a €33m deal in April, according to CEO Richard Brown. The sale saw 63 GiG staff move across Malta to Betsson.
“We are continuing to look at the whole organisation to streamline, with particular focus being placed on the sportsbook operating expense,” Brown told EGR.
“We still have dialogue ongoing with potential partners in that section but at this stage we don’t see that area as essential to the sportsbook platform offering.
“Having proprietary odds was an important strategy when we had a B2C sportsbook, because it meant that we could leverage the proprietary pricing versus having to spend on marketing.
“Now we don’t have B2C, that part of the sportsbook is not required in the same way, which is why we have stripped it out as part of the restructure,” he added.
GiG CEO Richard Brown
GiG does however remain committed to its sports betting business, which is headed up by former William Hill, Superbet and Scientific Games executive Stuart Weston.
While sports betting joint venture discussions in the US are currently on hold due to Covid-19, Brown said the moves being made by management will protect the long-term prospects of the department.
“These actions are being taken for us to maintain a strategic position and be committed to having a sportsbook offering within GiG,” said Brown.
“There’s no getting away from the fact it was a large investment project and we needed to reduce the cost base significantly in order to get into a sustainable position so it can grow again,” he added.