Gaming Firm’s Head Discusses Initial Year of Business-to-Business Approach

## Gaming Firm’s Head Discusses Initial Year of Business-to-Business Approach – Administration – iGB

Gaming Innovation Group (GiG) encountered a prosperous initial year as a solely business-to-business enterprise following the disposal of its consumer-facing holdings in 2020. Chief Executive Officer Richard Brown expresses satisfaction with the firm’s advancement, but he asserts that it marks merely the commencement.

GiG’s income augmented by 28% in 2021, with the media sector propelling the majority of the expansion. The media division witnessed a 31.2% surge in income, attaining €45 million. Brown indicates that the media sector is in a distinct stage of evolution compared to the platform division, yet it retains substantial potential for growth.

The organization has concentrated on natural growth since its acquisitions in 2016 and 2017, broadening its media collection and penetrating new markets.

This, in turn, prepares the ground for additional natural development, rather than forcing it into a standstill.

“I believe we are not yet where we should be in some areas, and in others, we can maintain and strengthen our position,” he explained. “The United States is clearly a market we have been entering – website traffic is up 94% year-over-year. We are still at a low level, but we are gaining momentum and will continue to expand.”

He also mentioned that the paid media division is performing “exceptionally well,” due to its ability to deliver a return on investment and the opening of other markets. There are also regions where its product will be primarily casino-oriented, while others will be sports-oriented, which allows for further expansion.

“I believe there is still a lot of potential, even though it is a large organization and it is at a mature stage,” Brown said.

The platform business has a longer trajectory. Revenue increased 13.2% in 2021, and 40.8% excluding white-label clients. The department’s strategy has been to find markets with potential, which continued in the fourth quarter with the launch in Buenos Aires City in partnership with local operator Grupo Slots.

Brown noted that the market has a long way to go before it reaches maturity, as online gaming’s share of Argentina’s gaming revenue is around 4%.

Buenos Aires’ goods are being refined while also being tailored for other areas like Colombia, which is the oldest online marketplace in the region.

Brown stated that while it’s unclear when and how Brazilian sports wagering rules will be implemented, some of GiG’s Argentine clients are already eyeing that market, so the arrival of Brazilian sports wagering rules is “highly anticipated.”

Brown explained that GiG’s expansion efforts in Latin America reflect the company’s focus on taking strategic positions in markets with high potential. “I believe Argentina is a good example, we don’t anticipate it to be a booming market in the first year, but we expect strong growth momentum in 2 to 4 years as the market matures.”

The acquisition of sports betting platform Sportnco, which was agreed upon last December, will be finalized by the end of the first quarter of this year, which will help achieve this objective.

He said, “I believe we can also take other positions in other parts of Latin America, especially with Sportnco’s portfolio.” “It tends to be a sports wagering-dominated market, so having a product there, we can promote sports wagering and introduce it into the casino as the industry matures.

He continued, “We’re going to continue this approach not only in Latin America, but also in other regions where we can expect the market to develop positively.” “I believe the challenge with [this approach] is the technical hurdles, although we’ve proven time and time again that we can do it on a large scale.”

Its not effortless, but we have faith in its strength, especially as some of the more developed markets in the Nordic region have slowed down somewhat.

Germany still presents this possibility, even though operators encounter strict limitations and higher taxes after the fourth Interstate Gambling Agreement. Despite GiG reporting a €700,000 decrease in income from the nation in its annual results, it continues to strengthen its presence there. In the fourth quarter, it signed a deal with a prominent unnamed operator and introduced its platform for TipWin in January.

Brown acknowledged that it will require time to see a return on this investment.

“We believe that the market will be a sustainable one, despite the current circumstances,” he stated. “Considering the size of the casino market, there are channeling issues that need to be addressed, and we’ve transitioned from a very robust market to a weaker one.

“But we believe we can reconstruct that position through customer loyalty, particularly with local brands that have a strong connection with customers,” he said. Germany is emerging from a year of regulatory upheaval, which sets the stage for this to occur.

The Platform division’s integration pipeline currently includes 9 brands, ranging from adding more brands from existing online customers to land-based operators entering the digital realm. There are currently 25 clients on the platform, active in 14 jurisdictions, with another 5 in the pipeline.

The expansion of GiG’s operations will pick up speed after the Sportnco agreement, broadening its authorized markets to 25 and its customer base to 55. Brown stressed from the outset the significance of ensuring a seamless transition.

Brown stated that GiG and Sportnco had completed as much preparatory work as feasible before the deal was finalized to get ready for the process. “I believe we are a very good match in terms of expertise, culture, and structure, and I am very confident that the individuals responsible for the actual integration will produce outcomes.

“It will be a comprehensive post-merger integration planning process, and we cannot rush it. We are very supportive of this deal, and we want to carry it out properly.”

GiG will subsequently discontinue its existing sports betting product, but the schedule for this process may be influenced by its customers, particularly during the World Cup at the end of 2022. “These are all loyal customers who operate on our platform, so we need to take care of them.”

With Sportnco in its inventory, Brown believes GiG’s emphasis on its regulated market strategy will further speed up. This is not only in the United States, where sports betting regulation far outpaces online casinos, but also in regions like France, which has become a substantial growth market in recent years.

Should 2021 be considered the year when long-term strategic positioning plans began to demonstrate their value, the platform division will soon match and even surpass the media business as these markets develop.

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