Gaming Innovation Group and Hard Rock International have agreed a mutual termination of the pair’s platform and sportsbook services collaboration.
It is expected that the migration of online will happen during the first quarter of 2021 while retail sports will be moved during Q4 2020, with HRI also immediately releasing GiG from its contractual exclusivity clause to permit the firm to pursue further US opportunities.
Despite acknowledging a “fruitful relationship,” which began with the provision of an omni-channel sportsbook platform in New Jersey, a commercial agreement to move forward could not be reached with it said that “the strategic aims of both companies lay in separate paths”.
Kresimir Spajic, SVP of online gaming and sports betting at Hard Rock International, commented: “We are thankful to GiG for helping us take our first steps in the regulated US online gaming and sports betting market. Together we have achieved notable results and launched significant innovations including the world’s first live slots. We wish GiG all the best in their future ventures.”
GiG says that the termination will not have any effect on 2020 guidance, with HRI representing less than two per cent of the group’s revenue during the last 12 months as well as having a marginal negative contribution on EBITDA.
Richard Brown, GiG CEO, explained: “Through the partnership with HRI the GIG organisation has been able to build and customise a very strong omnichannel product which has helped HRI online to break records during 2020. I am extremely proud of what our company has delivered in the past two and a half years we have been active in the US.
“We have a high quality, innovative omnichannel solution that we have built out of work with HRI and a very competitive casino offering that can be tailored to the US market which we believe can lead to future success as more states begin to regulate online.
“GiG is in a strong position to pursue further business opportunities in a fast-evolving US landscape, which we now look to intensify, having a fully compliant and quality solution operational in two US states, easily configurable to additional states.
“However, the global gambling market is an exciting one and we believe there are considerable areas of growth globally. GiG will support Hard Rock fully as they migrate to their new supplier and we wish them well in their future endeavours.”