Ellmount Gaming Ltd Acquires GIG's B2C Brand Highroller for $7.8M

One of GIG’s (Gaming Innovation Group) reputable B2C brands, Highroller, has been sold to Ellmount Gaming Ltd, a Maltese-based gaming operator.

The agreement weighs $7.8 million and it will allow its new owner to become a full-fledged B2B customer of GIG, holder of ISO 27001 Certificate. This includes further implementation of all platform services, front end solutions and managed services. In exchange, the selling company will continue to receive payments in monthly installments over the next 4 years, which is the entire duration of the contract. However, Ellmount will begin making its first payments to GIG seven months after this date, starting March 2020.

To date, Highroller has generated a revenue of $1.58 million (since the beginning of H1 2019 that is). The brand launched in 2017 and it will remain under its parent company’s license, at least until the long-term white label agreement is finalized. Regulatory approval will be required before all operations can be transferred onto Ellmount Gaming’s license.

Growing Brand Equity

The supplier still controls four out of six initial brands (Guts, Rizk, Betspin, Superlenny, Thrills and Kaboo) and this agreement shows GIG’s intentions to increase brand equity for online gaming hub, Rizk. The venue earns 71% of total B2C proceeds, which is the main reason to grow it in targeted markets.

Robin Reed, chief executive officer, has stated the following about the company’s recent divest:

“The sale of Highroller 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.

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.”

Meanwhile, GIG Goes Live in New Zealand

Days before divesting Highroller to Ellmount, GIG expanded in other territories and sealed a deal with SkyCity Malta, a subsidiary of SkyCity Entertainment Group Limited from New Zealand.

The aggregator will supply players with a “fully managed, first-class online casino experience” which covers the technical platform, content, services, front end development, marketing and so forth.

SkyCity is Australasia’s top-tier entertainment group, and here’s what Graeme Stephens, CEO had to say about the agreement:

“This is an exciting day for SkyCity and one we have been working towards for some time alongside SkyCity Malta and our partner GiG.

While ultimately a regulated online gaming market remains the preferred solution, the site launch is another step on our journey of pursuing opportunities to grow and diversify our earnings, addressing a new, fast growing industry which is highly complementary to our land-based activities and offering customers a multi-channel gaming experience.”

According to Robin Reed, this newly-signed collaboration coincides with GIG’s long-term goals to pursue global partners for strong brands in iGaming and (at the same time) help SkyCity in its ambitions to become NZ’s leading online gambling platform.

Source:

“Group is divesting its B2C brand Highroller to Ellmount Gaming Ltd”, gig.com, August 13, 2019.