STS chair: We want to become the biggest investors in the industry

Mateusz Juroszek has laid out a bullish future for Gaming Innovation Group (GiG) after claiming the group could list in the US and action further M&A as the Pole claimed his family office wants to become the industry’s largest investor.

Juroszek is the current chair of the board at STS, as well part of the Juroszek investment firms Betplay Capital, Juroszek Holding, MJ Investments and the MJ Foundation.

Speaking to EGR following further investment into GiG from the family via the MJ Foundation Fundacja Rodzinna office, Juroszek confirmed the family’s stake in the firm has been taken to over 15%.

On 4 April, the MJ Foundation acquired 100,000 shares in GiG from Oslo Børs, taking the group’s total shares in GiG to 4,943,772, equivalent to a 3.83% stake. 

The transaction means that the Juroszek family – via its Betplay Capital, Juroszek Holding, MJ Investments and the MJ Foundation vehicles – own 19,424,518 shares in GiG, which equates to 15.06% of the total registered share capital and voting rights. 

Juroszek explained to EGR that this latest investment reaffirmed the family’s belief that GiG has a bright future.

He said: “We have been involved in GiG for a couple of years and we saw that the shareholder base is very diversified. We then thought maybe we should be the ones to stand up and show commitment; we want to be the biggest shareholders as we believe in the business.

“It has a great future following the split. There is now a new CEO on the platform side, Richard Carter, who is improving the business, and we believe that it is becoming one of the top platforms for online casino and sportsbooks in the world. 

“At the same, you have Jonas Warrer driving GiG media to the moon. GiG is chasing Better Collective and I believe at some point, GiG will be the same size as Better Collective,” he added.

Juroszek also revealed that the family could potentially secure between 25% and 30% of GiG’s split businesses’ total shares as he cemented his commitment to the business.

The Pole added that the Juroszek family and its various offices will be willing to flood further capital into the business to support growth plans and potential M&A.

Juroszek continued: “GiG generates cash, so it can operate in the coming years, growing and paying dividends if it wants to. GiG can make smaller acquisitions based on finance from the bank, but if GiG really wants to scale up and go for some bigger assets, then more money will be required, which we will be happy to support if it makes sense for the business. 

“Financing is the easy part of M&A as when you find a good asset, everybody wants to finance it. The problem is what happens later. The first 100 days after you buy a company, you have to integrate, look for synergies, and ensure the business performs well.

“This is where I’m trying to push GiG so the company is ready for further acquisitions. Overall, GiG has our full support not only with financing but with all the other things such as management, recruitment and so on,” he concluded.

Elsewhere, Juroszek hinted that the US could be the next major step for the business on its journey. Following the acquisition of Time2play Media (formerly KaFe Rocks), management had talked up the prospect of making gains in North America.

Juroszek said that expansion would be just one step on a potential journey which could include listing in the States, as well as US-specific M&A.

Juroszek added: “I think GiG made the right decision to focus on Europe at a time when the industry was investing in the US. Now, following the acquisition of KaFe Rocks, which brings in good revenue, the US really needs to be looked at. What we don’t want to do is overpay because the time when everybody was super excited about the US is gone. 

“Now, we have to be smart; if GiG wants to be relisted to Nasdaq in US in the visible future, it needs significant revenue from the US, which can be done organically. But of course, acquisition will help a lot as well.”

Away from the family’s investments in GiG, Juroszek said there were plans to further invest across the industry ecosystem.

Juroszek family-owned Betplay Capital already has Better Collective, Future Anthem, Incentive Games, Evolution, Flutter, Raketech and Gambling.com Group in its portfolio.

Juroszek said that following Entain’s $750m acquisition of STS last year, the family has “a lot of free cash” which it plans to funnel into investment opportunities.

He explained: “As a family, we want to become the biggest investors in the industry in the world among family offices. Everybody will hear more and more from us about different investments.

“We are currently looking at different businesses within the industry, both public and private. We are currently involved  in many private and public businesses in the industry all over the world. After the transaction of STS, we have a lot of free cash, so we can support a lot of businesses like we did with GiG.”