Today’s announcement follows GiG signing an agreement with SkyCity on 21 May 2019 for the provision of its turnkey and fully managed online casino solution, including a gambling licence. The turnkey solution, powered by its leading technology and flexible architecture, includes the technical platform, fully managed services, gaming content, front end development, CRM, compliance and marketing. GiG will operate the online casino site from Malta on behalf of SkyCity.
SkyCity is one of Australasia’s leading gaming, entertainment and hospitality groups with world-class casino facilities in both New Zealand and Australia. SkyCity is a listed company in both New Zealand and Australia with a current enterprise value of around $3 billion (€1.8 billion). SkyCity’s vision is to be the leader in gaming, entertainment and hospitality in its communities. Responsible gaming is one of the cornerstones of its focus on sustainability and being a good corporate citizen.
The offshore online gambling market in New Zealand is currently estimated at approximately NZ$160 million (€96 million) with the total gambling market in New Zealand estimated at $2.7 billion (€1.6 billion) 2019. The New Zealand market is following the world-wide trend of strong and accelerating growth in online channels, underpinned by changing demands of consumers and a constant evolution of technology. The general expectation is that the country will regulate online casino gambling in the foreseeable future. All gambling which takes place in New Zealand is regulated by the country’s Department of Internal Affairs.
This partnership is expected to make a significant positive contribution to GiG’s revenues from 2020 onwards, however GiG does not expect a material impact on its revenues in 2019.
On news of today’s announcement, Graeme Stephens, Chief Executive Officer of SkyCity, says, “This is an exciting day for SkyCity and one we have been working towards for some time alongside SkyCity Malta and our partner GiG. While ultimately a regulated online gaming market in New Zealand remains the preferred solution, the site launch is another step on our journey of pursuing opportunities to grow and diversify our earnings, addressing a new, fast growing industry which is highly complementary to our land-based activities and offering customers a multi-channel gaming experience.”
Robin Reed, Chief Executive Officer at GiG, says, “GiG is pursuing a strategy of becoming the global partner for strong brands in iGaming. SkyCity Entertainment Group is the largest and most reputable gambling and leisure firm in New Zealand. We are very proud to have been entrusted to provide our full suite of gaming services to them. It has been great to work with Graeme and his accomplished team and due to a great collaboration, we have managed to launch a state-of-the art digital casino experience only two months after signing the agreement. We are looking forward to supporting SkyCity in its aspirations to provide a leading online gambling venue in New Zealand.”