The online gambling industry is constantly growing and expanding reaching new players daily.
With many changes happening publically there is also some behind the scenes action taking place.
The industry leading, Gaming Innovation Group Inc. recently agreed to part with one of their many online casinos.
Highroller heads to Ellmount
In a recent press release the Gaming Innovation Group Inc. (GiG) announced that they have decided to divest their B2C brand, Highroller, to affiliate and operator Ellmount Gaming Ltd. In the press release they stated that they are releasing Highroller to Ellmount for a whopping €7 million.
In the deal Ellmount Gaming has agreed to become a B2B customer of GiG and will continue to operate Highroller using GiG’s Platform Services, Front End solution and Managed Services.
According to the agreement GiG will receive the payment for Highroller in monthly instalments over the contract period of 48 months. The first payment will be due within seven months starting after this date.
Initially Highroller will remain as an operator under GiG’s licenses with a long-term white label agreement and will be migrated to Ellmount Gaming’s licenses after regulatory approval. GiG believes that Highroller will make a positive contribution under its new owner.
Highroller, one of the proprietary brands of GiG, was launched in December 2017 with a successful start. The casino has a strong brand recognition and in the first six months of 2019 already raked in revenues of €1.4 million with an EBITDA of €-0.2 million.
The reason behind the divestment
According to GiG the divestment is part of their strategy to increase brand equity for Rizk.com in the casino category in select markets. This is in order to improve earnings quality and margins through increased customer engagement and loyalty.
After this divestment GiG will be the operator of four brands namely Rizk, Guts, Kaboo and Thrills. Rizk is currently the best performing brand and represents 71% of their total B2C revenues with a year on year growth of 34%. Guts Casino is the second largest brand which they plan to further develop as a sports betting brand.
A Word from GiG
GiG CEO, Robin Reed, says that the sale of Highroller is a confirmation of their discipline and focus on growing Rizk.com to becoming a Tier 1 casino operator in select markets. Reed also stated that through the new agreement with Ellmount Gaming they gain increased cash flow and a strong B2B partner. Furthermore, Highroller will be getting the marketing muscle and focus it deserves to grow and flourish in the industry.
The brand was launched a mere two years ago and with this sale it has returned a three digit ROI for GiG. Reed said they are looking forward to seeing the brand prosper in the hands of capable owners, empowered by the full suite of their products and services.
