Gaming Innovation Group has called an end to investment in its proprietary game studio, as it intends to concentrate on a number of key areas to become “the global partner and operator for strong brands in igaming”.
Taking a strategic decision to halt funding into GiG Games with immediate effect, the four existing casino titles are to remain in GiG and continue to be offered to both internal and external operators.
Explaining the decision the firm has stressed a number of impacts, such as a reduction in operating expense, a concentration on key strategic areas and developing the technology and product to enable the full business potential.
As a result of the announcement cash savings are expected to build to approximately €250,000 per month once the full effect is realised, with revenues generated from the proprietary games division having been negligible.
The company started its game studio at the end of 2017, launching its first in-house developed casino game in October 2018.
Should proprietary content be considered strategically more important GiG’s games IP allows the company to re-enter the casino games vertical at a later stage, with it stressed that it will continue to offer casino games to internal and external operators from third party providers.
The 25 people employed by GiG Games have received termination packages as a consequence of the closure, with three employees retained to maintain the current game studio until the end of 2019.
“The decision to halt in-house content production is a strategic choice to facilitate full focus and resources on becoming the platform of choice for the igaming industry,” explained Richard Brown, acting chief executive officer of GiG.
“This forms part of recent strategic initiatives taken to reduce non-marketing related OPEX, together with our commitment to execution and bottom line earnings. I would like to thank everyone who has been involved in building our own games for their contribution and dedication to the company.”