Spiffbet has divested its games development arm to Million Games amid decreasing focus and investment, with the group to become fully focused on its own casinos and associated services.
This will see the company end its time within this segment of the industry, citing that funding has not been sufficient to continue running the business successfully, in addition to the games having “not contributed positively over the past year.”
The transaction includes all shares in STHLM Gaming Sweden, as well as the Rhino Gaming portfolio and associated related intellectual property rights, for a fee that can amount to a maximum of SEK 3.5 million (£260,000).
“Completing this acquisition and gaining access to STHLMGAMING and the games under the Rhino Gaming brand is a great opportunity for Million Games to rapidly expand the game portfolio to strengthen us in a market with high competition and many players,” said Thomas Nimstad, CEO and Founder of Million Games.
Following the sale of the group’s games development arm, which has been the subject of a liquidation analysis, Spiffbet is expecting to witness a positive impact on earnings from the current quarter
The company will be able to use the games covered by the transaction at its own casinos, or through the group’s partner business, free of charge for one year from the time they have been adopted by the Million Games platform.
“For Spiffbet, this marks the end of Spiffbet being a player in game development, but at the same time also a finding that Spiffbet has today changed into a casino player,” commented Henrik Svensson, CEO of Spiffbet.
“The acquisition of STHLM Gaming was good when it was done and has given us good returns. However, we have not had the resources to develop this alongside the casino operations. For a successful business in game development, investments are required in developing new games and developing sales channels.
“Given the focus on the casino business, this did not exist. Therefore, it was a fairly simple decision to search for a new owner of the game development business who can develop it further.”
