iGaming technology company, Gaming Innovation Group Inc. (GiG) (OSL:GIG), has agreed a deal that pending regulatory approvals will see it acquire a majority stake in Croatian operator Top Games d.o.o.

Under the terms of the share purchase agreement, the Stockholm-listed gaming operator and supplier will acquire 75% of Top Games’ shares and plans to join Croatia’s online casino market in the first half of 2020.

“Croatia is a very interesting marketplace for gambling.”

Terms of agreement:

The acquisition payment is based solely on a contribution of resources by the shareholders, with no cash being paid. The remaining 25% of the business will be retained by Top Games, a company that qualifies for a remote gambling license, which will upfront the initial costs, with the Malta-based operator providing operational expertise, a gambling platform and the rights of use of its brand.

Operation of the business will be a joint effort between the two companies.

CEO Brown says:

Acting Chief Executive Officer for GiG, Richard Brown, commented on his company’s recent share purchase agreement in an official press release…

“I’m excited to further expand our B2C business by entering another regulated jurisdiction. Croatia is a very interesting marketplace for gambling and supports our strategy to grow our own brands in high potential and regulated markets. GiG has a track record of creating responsible gaming experiences with a captivating UX. This is a good opportunity to showcase the strength of our online casino offering and our passion for providing end users with a safe, responsible and competitive online gambling experience.”

iGaming landscape:

According to the press release, five licensed online casinos currently operate within Croatia‘s regulated market and are subject to a gambling duty of 15%.

Situated at the crossroads of Central and Southeast Europe, on the Adriatic Sea, the country supports the locally regulated iGaming operators by blocking the IP’s of offshore and other undesirable/non-regulated operators.

The Balkan country’s aggregate gaming gross win is estimated at approximately €360 million in 2020e, according to H2 Gambling Capital.

In addition to achieving ISO 27001 certification for the second year running, GiG also reached an agreement with its partner, globally-recognized brand, Hard Rock International, to support its market entry with sports betting in Iowa and its initial launch at Hard Rock Hotel & Casino Sioux City.