GIG - GIG`s sweet spot in USA - A must read!

Orakel O
03.04.2018 kl 08:19

Dette er en arkivert tråd!
Har skrevet en artikkel som tar for seg GIG sin fantastiske posisjon i USA nå og videre ut i verden. Det som står i denne artikkelen er slikt som markedet overhodet ikke har tatt innover seg ennå:

Del 1:

GIG`s sweet spot in USA.

GIG is now in a great position to "fast track" tier 1 operators into USA, with the help of their platform service, GIG Core. This has great potential to grow GIG Core tremendously. I will use a few minutes to explain how this sweet spot has occurred and possible will develop further, also with comments from CEO Robin Reed. I am pretty sure the market do not fully understand and therefore not values high enough, the power GIG possesses by this Hard Rock strategic partnership, combined with their complete offering.

On Feb 5th, Hard Rock International announced GIG was chosen as their strategic partner for an ambitious plan to become nothing less than a global leader in the international gaming space:
"Hard Rock International – owner of one of the world's most recognizable brands – announces its iGaming division has entered into a strategic partnership with Gaming Innovation Group (GiG) to build a new online casino.

"Hard Rock has an ambitious plan to become a global leader in the international online gaming space," said Kresimir Spajic, SPV, Online Gaming at Hard Rock. "We are confident that, together with GiG, we can disrupt the market, through product innovation and unique user experience."
"We are excited to be part of Hard Rock International's inspiring and innovative plans to become a global leader in the international online gaming space," says Robin Reed, CEO, GiG"

Let us first take a look at New Jersey. Hard Rock will open a landbased Hotel and casino the 28th of May. They have also applied for an igaming operator license (the same has another new landbased casino , Ocean Resort). Only landbased casinoes in the state can apply for an igaming operator license. The total igaming operator licenses in NJ will then go up from today`s 5 to 7. GIG will be Hard Rock`s platform provider and creator of an online casino. GIG has applied for a platform operator license(supplier) in the state.

What is very important is that every igaming operator license (like Hard Rock has applied for), have a limitation of 5 "skins"(brands). If Hard Rock take one skin and GIG one skin, there will be 3 skins left on Hard Rock`s operator license. Each skin can operate Casino and Poker at this point (Sports soon to be decided on)

Very important notes:

It`s highly probably there will be shortage of skins going forward. Only land based casinos can apply for an operator license and they have a limited number of "skins"(brands) that can operate on this license. If also the US supreme court rule in favor for allowing sports betting (will be decided between now and the end of June), the demand for a skin will explode. Brands need both a USA licensed platform to operate from and a "skin" from a USA licensed landbased operator.
We have today, in addition to the landbased casinoes, 3 well knowed tier1 igaming brands operating on skins in NJ. They are 888, Bwin and Betfair. It`s highly probably we now will see other tier1 brands, bidding to get a skin. The big Buzz at this years ICE event was the USA market. States are opening up. We have the possibility of allowing sports betting coming up and brands prepare to go in there.

GIG`s sweet spot:

GIG`s Core platform is in a great position to get sign ups from tier1 brand operators cause:

- it will be a "fast track" into the USA market. GIG will apply for a platform operator license in every state they go into. By doing this GIG will save a lot of cost and time for the tier 1 operator brands, since they have to operate from a platform with a license. They will need a platform operator license, in addition to get a skin (which is a operator license)

- GIG has a strategic partnership with Hard Rock. If Hard Rock decides to give out skins, they will probably favor brands operating on GIG Core. More volume through GIG`s Core platform, will give better rates for GIG at suppliers. I find it highly probably that GIG has/will made/make deals, that share some of this higher revenue with Hard Rock, to encourage this.

- the strategic partnership Hard Rock /GIG, has an ambitious plan to become a global leader in the international online gaming space. By signing up to GIG Core, a brand has the possibility to follow the strategic partnership when they penetrate, state by state, country by country, continent by continent.

I must say I very much like the idea of how this strategic partnership, creates a driving force for brands to connect to GIG Core. I can see big cost savings and strategic synergies, for those brands that want to be a part of this journey and earn a seat on the ride (limited number of skins etc). Probably will GIG also try to roll out one of their own brands, Rizk or HighRoller, on this journey. They will be in a great position to do this with many synergies. This will of course depend on what Hard Rock decide, and alternative cost in some markets, by not letting in a potential tier1 client on GIG Core.

Redigert 03.04.2018 kl 08:37 Arkivert