The Juroszek family, renowned for their ownership of the prominent Polish betting operator STS Holdings, has acquired the largest individual stake in Gaming Innovation Group (GiG), amounting to 11.08% of the company’s shares.
Juroszek Family Shows Confidence in GiG’s Potential as Undervalued iGaming Powerhouse
The Juroszeks, founders of STS Group, expressed their confidence in GiG, describing it as one of the most attractive and interesting companies in the iGaming industry. They believe that GiG is currently undervalued and possesses substantial growth potential, particularly when considering the exchange rates of the Norwegian and Swedish currencies.
GiG has been reorganizing, separating its Media Services and Sportsbook Tech units. The restructuring aims to achieve a projected 70% growth in EBITDA and a 50% increase in revenue year over year. As part of this effort, GiG will split its Media Services unit, which includes the fast-growing lead generation business and the online player community AskGamblers.com, an asset acquired for €45 million ($49.6 million) in 2022.
The platform and sportsbook tech business of GiG, which encompasses technical iGaming platforms, front-end development, and other managed services, has recently been strengthened through the acquisition and integration of Sportnco for €52 million ($57.4 million). This move has expanded GiG’s technological offerings for sports betting and diversified its commercial pipeline.
The investment in GiG has been spearheaded by Betplay Capital, an investment fund owned by Mateusz, Zbigniew, and Tomasz Juroszek, the owners of STS Holding and ATAL S.A. Through their investment funds, the Juroszek family now controls approximately 14.2 million shares in GiG.
Mateusz Juroszek, the CEO of STS and Chief Investment Officer of Betplay Capital, emphasized the favorable valuation of GiG as a key factor in their decision to purchase shares.
GiG is set to unveil its interim 2023 results on August 16, which will provide further insights into the company’s ongoing reorganization efforts. Additionally, the search for a new CEO is underway following the departure of Richard Brown earlier this year.
GiG achieved impressive Q1 financial results, with a 49% increase in revenue compared to the same period last year, driven by new partnerships and expansion into new markets. Recently the company set foot on the Baltic market with three leading sports betting brands, acquired a B2B license in Sweden and launched its Rizk casino brand in Germany. GiG‘s strong performance across all verticals positions it well to pursue its long-term strategy and consolidate its presence in profitable markets.