Posted on: April 4, 2022, 09:39h.
Last updated on: April 4, 2022, 12:14h.
Gaming Innovation Group is solidifying its ownership of sports betting platform provider Sportnco. The two have completed the deal, as Sportnco continues to expand its online footprint.
GiG has been actively pursuing different avenues of expansion over the past year. Last December, Gaming Innovation Group (GiG) announced that it would purchase online sports betting platform provider Sportnco. It expanded GiG’s ability to be a well-rounded iGaming B2B supplier.
The acquisition is now complete, according to a recent announcement by GiG, and is already paying off.
GiG sees significant potential in the company, agreeing to a purchase package worth €51.3 million (US$56.7 million). Of that amount, €27.8 million (US$30.53 million) is a cash payment. Additionally, GiG included company shares worth €23.5 million (US$25.8 million). However, Sportnco is still on the hook for €18.6 million (US$20.42 million) it has in outstanding loans.
Sportnco Stock Outlook
GiG didn’t go after Sportnco alone. The deal included support from SkyCity, which invested €25 million (US$27.45 million) in GiG last December. In return, SkyCity received almost 13.5 million GiG shares.
Sportnco won’t be able to turn the new GiG shares into cash for at least six months. That’s the length of a freeze put in place against their sale. However, it’s a small risk for a potentially larger payout. If GiG and Sportnco continue to beat expectations this year and next, Sportnco shareholders could receive an additional €11.5 million (US$12.62 million) a year.
Last year, GiG continued to show significant company growth. Its full-year revenue was 28% higher than a year earlier, reaching €66.8 million (US$75.8 million).
New Expansion Efforts Arriving
As GiG conquers new targets in Europe and North America, it will benefit even more from Sportnco’s footprint. That’s already taking place through a new deal that arrived almost when the two were finalizing the contract.
Last week, Sportnco entered into a new agreement with Betway. The partnership will see the platform provider service Betway’s operations in Portugal, which it manages under the GM Gaming brand.
GM Gaming and Sportnco already partnered for operations in France. However, Betway went a different route when it entered Portugal. Now, it is changing course once again by bringing in Sportnco.
Portugal’s online sports betting industry continues to impress. The year 2021 delivered year-on-year growth of over 32%, as more sports events became available. New restrictions on live odds may constrict some growth in the future, but plenty of action still draws interest.