GiG to divest Highroller to Ellmount Gaming
13 August 2019
(PRESS RELEASE) -- Gaming Innovation Group Inc. has reached an agreement to divest its B2C brand Highroller
to affiliate and operator Ellmount Gaming Ltd. for a total price of €7 million. Ellmount Gaming will as part of the deal become a B2B customer of GiG and continue to operate Highroller using GiG's Platform Services, Front End solution and Managed Services.
GiG will receive the payment in monthly installments over the contract period of 48 months, starting seven months after this date.
Highroller will initially remain as an operator under GiG's licenses with a long-term white label agreement and is planned to be migrated to Ellmount Gaming's licenses following regulatory approval. GiG expects positive contribution from Highroller under the new owner.
Highroller was a proprietary brand of GiG, launched in December 2017 with a successful start and a strong brand recognition. In the first six months of 2019, Highroller had revenues of €1.4 million with an EBITDA of €-0.2 million.
This divestment is part of GiG's strategy to increase brand equity for Rizk
in the casino category in select markets, in order to improve earnings quality and margins, through increased customer engagement and loyalty.
GiG will after this divestment operate with four brands: Rizk
, GUTS Casino
and Thrills Casino
. The Rizk brand is the best performing brand and represents 71% of total B2C revenues with a year-on-year growth of 34% (Q1 2019). The second largest brand is Guts
, which will be further developed as a sports betting brand.
Robin Reed, CEO of GiG, says, "The sale of Highroller is a confirmation of our discipline and focus as we are growing RIZK to become a Tier 1 casino operator in select markets. Through this agreement, we gain increased cash flow, a strong B2B partner and Highroller will get the marketing muscle and focus it deserves. The brand was launched only two years ago and with this sale, it has returned three-digit ROI for GiG. I am looking forward to seeing the brand prosper in the hands of very capable owners, empowered by our full suite of products and services."
This information is information that Gaming Innovation Group Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, at 08:20 CET on 13 August 2019.