Gaming Innovation Group has reached an agreement to sell its B2C brand Highroller to affiliate and operator Ellmount Gaming for a total consideration of €7m.
As part of the deal Ellmount Gaming is to become a customer of Malta headquartered GiG, and will continue to use the firm’s platform services, front end solution and managed services.
Furthermore, Highroller is to also initially remain as an operator under GiG’s licences via a long-term white label agreement, with regulatory approval necessary before the entity can be migrated to Ellmount Gaming’s licences.
GiG will receive the payment in monthly instalments over the contract period of 48 months, starting seven months after agreement to divest was reached.
Robin Reed, CEO of GiG, said of the sale: “The sale of Highroller is a confirmation of our discipline and focus as we are growing Rizk.com to become a tier one casino operator in select markets. 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.”
The divestment comes as part of GiG’s continued strategy to increase brand equity for Rizk in the casino category in select markets, as it strives to improve earnings quality and margins through increased customer engagement and loyalty.
Highroller was a proprietary brand of GiG, launched in December 2017, for the first six months of this year it recorded revenue of €1.4m with an EBITDA of €-0.2m.
Following the sale GiG, which last week aligned with SkyCity Entertainment to launch a New Zealand-facing online gambling portal, will operate four brands, namely Rizk, Guts, Kaboo and Thrills.
The former is the best performance of these representing 71 per cent of total B2C revenues with a year-on-year growth of 34 per cent, with the second largest, Guts, set to be developed as a sports betting brand.