SkyCity Entertainment Group, a major player in the New Zealand and Australian gaming industry, has announced its decision to divest its stake in online gaming platform Gaming Innovation Group (GiG). The move comes as part of SkyCity’s strategy to focus on its core land-based casino operations and reduce its exposure to online gaming.
The decision to sell its stake in GiG was influenced by a number of factors, including regulatory hurdles and the evolving legal landscape surrounding online gambling in various jurisdictions. SkyCity’s CEO Graeme Stephens stated that the company believes it is in the best interest of its shareholders to sell its stake in GiG and focus on its core business.
GiG, a Malta-based company, operates a number of online gaming brands and platforms, including Rizk and Guts Casino. The company has seen significant growth in recent years, but has also faced challenges in terms of regulatory compliance and market competition.
SkyCity initially acquired a 34% stake in GiG back in 2018, as part of its strategy to expand into the online gaming sector. However, the company has since shifted its focus back to its traditional land-based casino operations, which generate the majority of its revenue.
The sale of its stake in GiG is expected to generate significant proceeds for SkyCity, which plans to use the funds to invest in its existing properties and pursue new growth opportunities. The company has not disclosed specific details about the sale, but industry analysts predict that it could fetch a substantial premium given GiG’s strong market position and growth potential.
SkyCity’s decision to divest its stake in GiG has been met with mixed reactions from industry observers. Some view it as a prudent move to focus on core operations and reduce regulatory risk, while others see it as a missed opportunity to capitalize on the growing online gaming market.
In the meantime, GiG will continue to operate independently and pursue its growth strategies under new ownership. The company’s CEO, Richard Brown, expressed confidence in GiG’s ability to thrive in the competitive online gaming landscape and thanked SkyCity for its partnership over the years.
Overall, SkyCity’s divestment of its stake in GiG marks a significant development in the online gaming industry and reflects the ongoing challenges and opportunities facing companies in this rapidly evolving sector. It will be interesting to see how both companies fare in the months and years ahead as they chart their respective paths in the gaming market.