GiG to sell Highroller B2C brand to Ellmount Gaming
Gaming Innovation Group (GiG) has reached an agreement to sell its Highroller B2C brand to affiliate and operator Ellmount Gaming for €7m (£6.5m/$7.8m).
As part of the deal, Ellmount Gaming will now become a B2B customer of GIG and continue to operate Highroller using GiG’s Platform Services, Front End solution and Managed Services.
Highroller will initially remain as an operator under GiG’s licences with a long-term white label agreement, but plans are in place to migrate to Ellmount Gaming’s licences after regulatory approval. Its existing B2C brand, CasinoRoom.com, is licensed in Malta, Curacao and the UK.
Launched in December 2017, Highroller generated revenue of €1.4m in the first half of 2019, but reported an earnings before interest, tax, depreciation and amortisation loss of €200,000.
GIG said the sale forms part of its ongoing strategy to focus on its core Rizk.com brand, with a focus on boosting earnings quality and margins through increased customer engagement and loyalty.
Should the deal go through as expected, GiG would operate with four brands: Rizk, Guts, Kaboo and Thrills.
“The sale of Highroller is a confirmation of our discipline and focus as we are growing Rizk.com to become a Tier 1 casino operator in select markets,” GiG chief executive, Robin Reed, said.
“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.”
Terms of the deal state GiG will receive the €7m payment in monthly instalments over the contract period of 48 months, starting seven months after today (13 August).
GiG is due to announce its financial results for the opening six months of the year tomorrow (14 August).