As it presented plans for the newly spun-out platform business to investors this week GiG outlined plans to diversify its product suite into the growing social casino vertical.
“SweepX has substantially increased the platform’s addressable market, and we are well positioned to take advantage of this rapidly growing new market,” it said of the sweepstakes casino solution it launched in May.
SweepX offers operators dual-wallet, store management for prizes and AI-assisted gamification tools that encourage players to compete and connect.
Land-based sweepstakes operator Primero Games was the supplier’s first client and will launch with the platform in H2.
Sweepstakes casinos have boomed in the US amid stalled igaming regulations. GiG says the vertical presents attractive player propositions, such as a lifetime player value of up to $1,000 over two years. According to various data sources, the average purchase amount at sweepstakes casinos is between $20 and $50 per transaction.
GiG Platform targets €40m revenue in 2025
The wider GiG Platform business is targeting revenue of more than €40m next year as it announced plans to begin trading at the start of next month. Revenue for 2024 is expected to be in the region of €32m.
the platform arm will be spun off from the existing business and is to start trading as GiG Software on the Nasdaq First North investment market on 1 October.
The remaining business, which will retain media services such as affiliate lead generation, will be known as GiG Media.
While GiG Platform is estimated to be valued at just 14% of the total value of GiG before the spinoff, 2025’s outlook is much more positive, with expected revenue of at least €44m, which would imply year-on-year growth of 38%. As of today, GiG said, 82% of 2025 revenue is already contracted.
With 2025 EBITDA of at least €10m expected, the business would have an applied EBITDA margin of 23%.
A strategic review last year prompted the split of the two businesses. The first would consist of media services, including GiG’s affiliate lead generation services. The second would be focused on platform and sportsbook, which would consist of the company’s technical igaming platforms.
Also included in the platform and sportsbook segment is front-end development and other managed services, such as player safety, customer operations and marketing.
According to GiG, the purpose of the split is to “sharpen the focus” of each segment, optimise growth opportunities and ensure that each new business can benefit from strategic and financial flexibility.
Original article: https://igamingbusiness.com/finance/gig-eyes-sweepstakes-opportunity/
