Gaming Innovation Group (GiG), has signed a head of terms agreement with Argentine gaming and entertainment firm Grupo Slots to enter the regulated City of Buenos Aires online gaming market.
Grupo Slots, headquartered in San Luis, Argentina, provides entertainment and leisure services in more than 20 locations across Argentina where it operates casinos, gambling and bingo halls, lottery, as well as the online gaming website Jugadon.com.
GiG will provide the operator with a full online turnkey solution, which includes the technical igaming platform, sportsbook, front end development, GiG’s data platform and GiG Logic. The minimum contract period will be four years with an automatic extension for one additional year and is based on a revenue share model in combination with set up fees. Signing of the final agreement is anticipated before the end of Q3.
Argentina is regulating online gambling on a province by province basis, with expectations of licenses to be awarded to Grupo Slots for Buenos Aires City, anticipated to be the largest market within Argentina, in the later part of 2020. This will be followed by the online launch.
Citing estimates from H2GC, GiG said that the total gambling market in Argentina is worth EUR 352m ($414m), however only 7% is currently done online. As an emerging market, therefore, there is significant growth potential in the interactive space as the space adapts to online gambling, driven by regulation and growth of digital penetration.
“GiG is well placed to capture this market growth with a leading partner in Grupo Slots who already have a regulated online presence with Jugadon.com,” said the firm.
GiG CEO Richard Brown commented on the deal, saying: “I am extremely excited to partner with and onboard Grupo Slots. We see a great potential in the regulated environments within Argentina as that market is in the early transformation from offline to online gambling, and to partner with one of the largest and premier land based operators in the market is a great opportunity to showcase our product in the LatAm market while delivering the platform for online gambling transformation for Grupo Slots.”
Juan Ignacio Torres, General Manager of Grupo Slots, said: “We are extremely pleased to have reached this agreement with a company like GiG, an international company with extensive experience, which demonstrates a high level of seriousness and excellence in the field of online gaming.
“On our part, we also contribute 35 years of experience, innovation, infrastructure and knowledge of the Argentine gambling market, currently being one of the few operators with an online gaming presence (www.jugadon.com). This agreement complements us and gives us a tool of quality and excellence to continue growing in this market with so much future potential.”
It is anticipated that the license application will be granted in Q4 of 2020 with a go live date following shortly afterwards. GiG said it expects a positive contribution from 2021 onwards.