GiG Sets Sights on Sweepstakes Market in Strategic Split

Gaming Innovation Group (GiG) sees big chances in sweepstakes as it gets ready to split off its platform and sportsbook operations into a separate company. This plan, which aims to simplify operations and boost growth, happens as sweepstakes gaming looks set to grow fast in the US market. Growth forecasts look good even with some rules standing in the way.

GiG Highlights SweepX as a Key Platform for Market Penetration in Latest Investor Presentation

In its latest pre-split investor presentation, GiG spotlighted SweepX, its new social casino platform, as a crucial element for gaining market share. The company thinks this groundbreaking platform solution will help it break into the booming sweepstakes market, which experts predict will grow from $3.1 billion in 2022 to $6.9 billion by 2025. 

GiG markets SweepX as a one-of-a-kind platform offering. It gives operators tools to boost player experience and keep them engaged, including AI-powered gamification, a system with two wallets, and ways to manage prize stores.

SweepX’s launch is already producing outcomes. GiG’s pipeline has grown a lot, with a yearly sales forecast of €50 million ($55.7 million) showing a five times increase from last year. This expansion stems from the company’s team-up with Primero Games, a top US sweepstakes operator. Primero Games plans to start using SweepX in the second half of 2024, a step that will help GiG gain more ground in the North American sweepstakes market.

GiG Prepares for Growth Amid Challenges in the Sweepstakes Market

Despite the positive outlook, regulators are taking a closer look at the sweepstakes market. In 2024 several big sweepstakes companies, like VGW and Stake.us, ran into trouble with the rules. This led to stop orders from Michigan officials and calls from the American Gaming Association to keep a closer eye on things. As a result, the Social and Promotional Gaming Association came into being. This group aims to stand up for the industry’s interests as regulatory pressure grows.

As part of its bigger plan, GiG’s upcoming split will create two separate companies: GiG Software, which will focus on platform and sportsbook operations, and GiG Media, which will handle affiliate lead generation and other media services. This division aims to enhance the focus of each business unit and provide more financial and operational flexibility.

GiG Software plans to start trading on the Nasdaq First North investment market on October 1, with the goal to make at least €44 million ($49 million) in revenue by 2025, which means a 38% growth each year.

Looking to the future, GiG’s platform business is set to grow, with 82% of its expected 2025 revenue already under contract. This fact, along with the bright prospects for SweepX and its partnerships, puts the company in a good position to take advantage of the changing sweepstakes market even with the regulatory hurdles that are coming up.