A Glitnor spokesperson told iGB that neither the value of the transaction, nor the timeframes involved, are currently being disclosed by the parties.
A joint statement revealed that the shareholding would be acquired “over time”.
PlayStar was founded by chairman Joel Wikell. It attracted a $15m (£11.7m/€13.5m) equity investment from Meyer Global Management in December 2022. The deal was announced five months after its launch in New Jersey. The announcement also came two months after unveiling its casino app in the state.
The operator says that it exceeded key performance indicators in its opening months in New Jersey. This was attributed to a consumer-focused model.
The minority stake acquisition was sealed by Glitnor Ventures. This was established by the group to “support and invest in up-and-coming businesses that could benefit from Glitnor’s expertise”. Glitnor says the deal is “perfectly aligned” with its expansion strategy in North America.
Growth plans
Last month it was announced that Richard Brown, CEO of Gaming Innovation Group would join Glitnor as its new CEO. The appointment will take effect in January 2024.
Brown will assume his role with the business as a permanent replacement for David Flynn. Flynn stepped down in December last year. Co-founder Jorgen Nordlund is serving as interim CEO.
“Through our investment work with Glitnor Ventures, Glitnor Group aims to identify the best up-and-coming talent the igaming industry has to offer – and in PlayStar we believe we’ve identified the perfect partner in the US,” Nordlund said.
“Our investment in PlayStar comes off the back of an incredibly successful debut year for the brand that was characterised by an extensive range of locally-specific, community-focused promotions and we hope with our backing, they can go on to achieve bigger and better things in 2023.
Aligned ambitions
PlayStar has plans to expand across North America, including in Pennsylvania. The statement announcing the latest deal outlines how Glitnor is keen to “help PlayStar reach even greater heights in New Jersey and beyond”.
PlayStar Casino CEO Per Hellberg said that the latest deal is “a fitting reward for what has been a remarkable debut year for us in the New Jersey market”.
“With Glitnor Group’s funding and support behind us, I’m sure PlayStar will go from strength to strength in 2023 and beyond, enabling us to further cement our position as the preferred online casino in the thriving US market,” he continued.
Original article: https://igamingbusiness.com/gaming/online-casino/glitnor-playstar-stake-acquisition/
