Gaming Innovation Group (GiG) has provided a brief insight into its future US endeavours, as the Malta headquartered firm posted a 39 per cent operating revenue increase to €36.9m ($42m) year-on-year (yoy) in its Q2 financial report.
Signing its first US customer in Hard Rock international, GiG states in its interim report that “the US market presents a significant opportunity for GiG, and the company will continue to invest and add resources to further develop and position its B2B services in the US, for the long term. GiG will apply for any further licences in the US market on a customer led basis.”
Going live with Hard Rock on July 3 after being granted approval from New Jersey’s Division of Gaming Enforcement (DGE), Robin Reed, GiG CEO, stated: “We launched our platform service GiG Core into the regulated US market of New Jersey through our partnership with Hard Rock International. GiG’s aim is to power Hard Rock in its ambition to be the leading online casino operator in New Jersey.
“And more states are opening up. The supreme court’s repeal of the federal ban on sports betting will pave the way for further opportunities to expand our business in the US states as they regulate.”
With the firm also giving a brief update on revenue expectations from the partnership for H2 2018: “The impact on the third quarter revenues is expected to be limited. We expect business to pick up from September onwards with a small positive contribution in the fourth quarter.
“Hard Rock International has an ambition to become the leading operator in New Jersey, and potentially launch into other markets. Over time, the agreement presents an opportunity to drive revenues for GiG.”
GiG, who’s new sports betting services are expected to be available to external operators from this month, saw gross profit for Q2 reach €30.5m ($34.9m), a 39 per cent boost on the previous years €21.9m ($25m), with an 83 per cent margin contrasted to 82 per cent the previous year, and EBITDA standing at €1.7m ($1.94m), a slight decline on €1.9m ($2.17m) yoy, due to “the strong focus on investments and expansion”.
Expecting full year revenues of between €155m ($176.8m) – €162M ($184.7m), with an EBITDA between €16m ($18.2m) – €20m ($22.8m), Reed added: “I want to ensure the long term growth and profitability for our operator business, while quickly addressing the losses in this segment, which have offset the positive development across the balance of the business.
“We have kept ourselves more than busy with a range of key initiatives: We have consolidated our brand positioning with an increased focus on fewer brands in key markets. We have developed our marketing strategy and organisation with a strong focus on agile performance marketing.
“We have launched the new sportsbook on our flagship brand Rizk.Com and our operator Guts is set to go live next week with its V2.0. We have high hopes for Thrills which is being relaunched as a ‘Pay N Play’ casino at the end of this month, and our media department has seen good potential in turning SuperLenny into an affiliate website.
“Finally, we have focused heavily on compliance, introduced a new player safety team with a strong focus on responsible gaming and sustainability. These initiatives are paying off and we have seen healthy KPIs going into Q3.
“With the majority of the heavy-lifting behind us and the strongest season ahead of us, we should see growth in both revenues and profits in the coming quarters, while working towards our goal of becoming the largest full service company to the igaming industry.”