Gaming Innovation Group, Inc (GiG) has signed a share purchase agreement to acquire 75% of the shares of Croatian company Top Games Doo [private limited liability in Croatia], a company that qualifies for a remote gambling permit, according to a press statement. GiG is planning to enter the online casino market in Croatia via this partnership in the first half of 2020.
GiG will acquire 75% of Top Games with the remaining 25% retained by the local partner who has a successful history in land-based casino businesses. The payment for this acquisition is solely based on a contribution of resources by the shareholders with no cash being paid, the press statement says. The local partner will upfront the initial costs, whereas GiG will provide rights of use of the brand, a gambling platform and operational expertise.
GiG says the agreement is based on a collaborative partnership model, expanding GiG’s business-to-customer [B2C] online gaming offering in a growing regulated market. Both parties will cooperate in the ongoing operation of the business.
GiG expects a moderate impact on its revenues deriving from this agreement from H2 2020 with an accelerated increase in revenue contribution from H1 2021.
“I’m excited to further expand our B2C business by entering another regulated jurisdiction. Croatia is a very interesting marketplace for gambling and supports our strategy to grow our own brands in high potential and regulated markets,” said Richard Brown, acting CEO of GiG.
“GiG has a track record of creating responsible gaming experiences with a captivating UX. This is a good opportunity to showcase the strength of our online casino offering and our passion for providing end-users with a safe, responsible and competitive online gambling experience,” the acting CEO added.
Croatia has a population of approximately 4.1 million and is a regulated market, currently with six licensed online casinos. Croatia supports the locally regulated online operators by IP blocking both offshore and other non-regulated operators. The total gambling gross win in Croatia has an estimated total value of approximately €360 million in 2020, according to H2 Gambling Capital estimates. Online gambling in Croatia is subject to a gambling duty of 15%.