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The online casino and gambling operator Gaming Innovation Group (GIG) has reached an agreement to purchase a 75% stake in Top Games d.o.o., the licensed Croatian online gambling company, with the existing shareholders retaining a 25% in the company.
The recently announced deal will enable GIG to enter Croatia’s regulated online casino market during the first half of 2020.
The Croatian online casino market has seen rapid growth over the last few years, and this deal will allow GIG to access this emerging online casino market and expand its international operations. Top Games has a successful history of operating brick and mortar casinos in the territory.
The deal does not involve a cash transaction, with the Malta-based gambling company GIG purchasing the 75% stake by offering access to their resources, the right to use of one of their in-house brands, and access to their gambling platform and industry expertise.
2020 Market Access
The deal is subject to approval by regulators, but GIG is expecting it to be approved and to access the Croatian online casino market during the first six months of 2020.
The company is expecting access to Croatia’s market to have a moderate impact on revenue during the second half of 2020 but will be looking to accelerate growth and revenue during 2021.
The acting CEO for GIG, Richard Brown, stated that the company was excited to bring their in-house brands into Croatia’s “very interesting marketplace”.
The deal marks another step in the company’s strategy to expand into emerging regulated markets.
Access To Croatia’s Market
Croatia made some significant changes to the regulation of its online gambling industry earlier this year. For several years previously, online casinos and gambling websites had access to Croatia’s market no matter where they were based.
The regulations were tightened up back in January 2019, with the Ministry of Finance announcing that all foreign online gaming websites must be registered and licensed by the Croatian government.
With GIG purchasing a majority stake in Croatia-based Top Games, the online gaming company will have the legal right to access the Croatian market pending approval from regulators.