A mutual termination of the pair’s platform and sportsbook services partnership has been decided by Gaming Innovation Group and Hard Rock International.
The online transfer is expected to take place during the first quarter of 2021, while retail sports will be transferred during Q4 2020, with HRI also freeing GiG immediately from its contractual exclusivity clause to enable the company to explore additional US opportunities.
Despite recognising a “fruitful relationship,” which started with the provision of an omni-channel sportsbook network in New Jersey, it was not possible to reach a commercial agreement to move forward, stating that “the strategic aims of both companies lay in separate paths.”
Kresimir Spajic, Hard Rock International’s SVP of online gaming and sports betting, commented: “We are thankful to GiG for helping us take our first steps in the regulated US online gaming and sports betting market. Together we have achieved notable results and launched significant innovations including the world’s first live slots. We wish GiG all the best in their future ventures.”
GiG reports that the termination would have no effect on the 2020 guidance, with HRI accounting for less than 2 percent of the group’s sales over the past 12 months and a small negative contribution to EBITDA.
GiG CEO Richard Brown explained: “Through the partnership with HRI the GIG organisation has been able to build and customise a very strong omnichannel product which has helped HRI online to break records during 2020. I am extremely proud of what our company has delivered in the past two and a half years we have been active in the US.
“We have a high quality, innovative omnichannel solution that we have built out of work with HRI and a very competitive casino offering that can be tailored to the US market which we believe can lead to future success as more states begin to regulate online.
“GiG is in a strong position to pursue further business opportunities in a fast-evolving US landscape, which we now look to intensify, having a fully compliant and quality solution operational in two US states, easily configurable to additional states.
“However, the global gambling market is an exciting one and we believe there are considerable areas of growth globally. GiG will support Hard Rock fully as they migrate to their new supplier and we wish them well in their future endeavours.”