Gaming Innovation Group (GiG) and Hard Rock International have mutually agreed to terminate the duo’s platform and sportsbook services agreement.
Both parties did acknowledge what had been a ‘fruitful relationship’ with an upswing in results. However, both firms could not come to a viable commercial agreement to move forward with the statement confirming that ‘the strategic aims of both companies lay in separate paths.’
Kresimir Spajic, SVP Online Gaming and Sports Betting at Hard Rock International commented: “We are thankful to GiG for helping us take our first steps in the regulated US online gaming and sports betting market. Together we have achieved notable results and launched significant innovations including the World’s First Live Slots. We wish GiG all the best in their future ventures.”
Over the last 12 months Hard Rock represented less than 2% of GiG’s revenues, which resulted in a marginal negative contribution on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), meaning that the mutual termination will have little effect on 2020 guidance.
Richard Brown, CEO, GiG commented: “Through the partnership with HRI the GIG organization has been able to build and customize a very strong omnichannel product which has helped HRI online to break records during 2020. I am extremely proud of what our company has delivered in the past two and a half years we have been active in the US.
“We have a high quality, innovative omnichannel solution that we have built out of work with HRI and a very competitive casino offering that can be tailored to the US market which we believe can lead to future success as more states begin to regulate online.”
It is expected that the migration of online will happen during the first quarter of 2021 while retail sports will be moved during Q4 2020. Moreover, Hard Rock has immediately released GiG from its contractual exclusivity clause in order to allow the company to pursue further nationwide US businesses.
Brown added: “GiG is in a strong position to pursue further business opportunities in a fast-evolving US landscape, which we now look to intensify, having a fully compliant and quality solution operational in two US states, easily configurable to additional states.
“However, the global gambling market is an exciting one and we believe there are considerable areas of growth globally. GiG will support Hard Rock fully as they migrate to their new supplier and we wish them well in their future endeavors.”