Gaming Realms Sells Off Real Money Division
2018 saw licensing development skyrocket to £1.8 million, representing a growth rate of 300% when compared to the year before that. Slingo is the group’s flagship brand and it makes perfect sense that it would want to focus on growing the brand in the international arena.
River UK Casino Big Deal-Driver
The purchase price includes a deferred consideration totalling to £4.2 million, which will become due and payable in October 2020. The agreement of sale is subject to regulatory as well as shareholder approval. Should all go according to play, the Oslo-listed River iGaming will also acquire the seller’s 30% stake in River UK Casino.
River iGaming had already bought an initial 70% stake in River UK Casino during June of 2018, and successfully acquiring the remaining 30% will mean full ownership for the company, which generally proves ideal when acquiring any new endeavour.
A Golden Move
Gaming Realms has offered detailed insight as to how it plans to put the income gained from the sale to good use. First off, it plans to repay a £3.5 million loan that had been granted to it by JPJ Group plc. The rest will be invested in the expansion of its Slingo brand.
According to CEO Patrick Southon, acquiring the Slingo brand back in 2015 was one of the best decisions that the group had ever made. Southon said that the new regulatory landscape in the UK, coupled with a number of region-specific challenges, had made it increasingly more difficult to run a profitable real-money endeavour that was dependent on local business alone.
Thanks to the acquisition of Slingo, the company has been in the fortunate position of having entered the international arena, as well as having gained new regard as a large-scale developer.
In addition to many new avenues of income now made possible by Slingo, the group also expects to cut costs to the tune of £3 million thanks to having sold off its real money business.