Gaming Innovation Group (GIG) last week scooped up sports betting company Nordbet, which possesses a license to run sports betting in the northern German state of Schleswig-Holstein, which has a population just shy of 3 million people. This is widely regarded as a strategic move which positions GIG well within the German sports betting market and prepares them for further expansion there. Currently, the German sports betting market is calculated to have a turnover of over €5 billion.
In the wake of the acquisition, GIG Chief Executive Officer Robin Reed stated, “We have high ambitions for our sports betting offering, (which) are being accelerated by the launch of three new B2B products for sports betting in H1 2018… Combining these sports betting services with preferred payment providers will make GIG’s sports offering in Germany very competitive… ahead of the FIFA World Cup in June 2018.”
The timing, in that sense, is immaculate, especially considering the deal is only costing GIG €500,000. One of the reasons for the stellar price point reached in the deal is the standout fact that this license – and, indeed, Nordbet itself – is currently dormant in the region. The license itself is valid until February of 2019 and currently represents the sum total of Nordbet’s assets. Its acquisition, therefore, will enable GIG to provide sports betting in the region through its existing brands Thrills, SuperLenny and Guts.
GIG and are based out of Malta and are best known as an online gambling technology supplier. It is expected that, as well as offering sports betting in the Schleswig-Holstein region, this deal will also enable them to establish integration with some of the most prominent Germany payment processors, which should smooth the way for any later further expansion into the German market and across other states.
GIG reported its best quarterly report on record back in the fourth quarter of 2017, with full year revenue up 125% to just over €120 million. They also launched their seventh business to consumer (B2C) brand, Highroller, last year
Mopping up dormant businesses can be a lucrative business for any operator equipped to step in at the right time and exploit their position relative to existing brands, upcoming sporting events (in this case the World Cup) and strategic geographic positioning to make the acquisition attain value beyond that which it has on paper. This is clearly a smart move with some foresight on the part of GIG.
