Last Updated on Tuesday, 13 August, 2019 at 8:53 am by Christian Keszthelyi
Gaming Innovation Group Inc (GiG) is selling its B2C brand Highroller to affiliate and operator Ellmount Gaming Ltd for €7m, according to a press statement issued by the group. GiG is divesting the brand to increase brand equity for Rizk.Com. Ellmount will pay for the brand in monthly instalments over the contract period of 48 months, starting seven months after signing the deal.
Ellmount Gaming will become a B2B customer of GiG and carry on with operating Highroller using GiG’s platform services, front-end solution and managed services. Nevertheless, Highroller will initially remain as an operator under GiG’s licences with a long-term white label agreement and is planned to be migrated to Ellmount Gaming after its related licences have received regulatory approval.
GiG expects a positive contribution from Highroller under the new owner. Launched in December 2017, Highroller has been a proprietary brand of GiG. In the first six months of 2019, Highroller had revenues of €1.4 million with an EBITDA of -€0.2 million.
Divesting the brand, GiG says, is part of its strategy to increase brand equity for Rizk.Com in the casino category in select markets, in order to improve earnings quality and margins, through increased customer engagement and loyalty, the press statement says. Following the divestment, GiG will operate with four brands: Rizk, Guts, Kaboo and Thrills.
GiG notes that the Rizk brand is the best-performing one, representing 71% of total B2C revenues with a year-on-year growth of 34% (Q1 2019). The second-largest brand is Guts, which will be further developed as sports betting brand, GiG adds.
“The sale of Highroller is a confirmation of our discipline and focus as we are growing Rizk.Com to become a Tier 1 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,” GiG CEO Robin Reed says.
“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 CEO adds.