SBC News Tomasz Juroszek: BetPlay Capital doubles bet on GiG’s organic split 

Tomasz Juroszek: BetPlay Capital doubles bet on GiG’s organic split 

BetPlay Capital has doubled down on the strategic split of Gaming Innovation Group (GiG), becoming the biggest shareholder in the tech group’s forthcoming standalone media and platform businesses.

The investment fund of the Juroszek family strikes  early on the split of GiG’s core business units. That will ride alone facing the evolving challenges of igaming’s fragmented media and tech landscapes.

Tomasz Juroszek, CIO of the BetPlay fund, explained the high-risk bet to SBC, as shareholders choose to separate GiG and move its units from their comfort zones.

“For BetPlay Capital and our family, GiG is an extremely attractive entity that operates in an industry we know well,” Juroszek said. “We understand GiG’s business but see further growth prospects and want to engage more strongly in its future.”

“The split of GiG into two separate entities is ongoing, and we will become the largest shareholders of two independent businesses with strong growth prospects… Hence, we are looking for opportunities to increase our shareholding in GiG.”

Doubling down on its investment, BetPlay understands the challenges awaiting GiG’s standalone strategy, as market realities underline the difficulties of balancing US growth costs with stagnant European market results.

Juroszek views US and European market realities as a challenge of smart adaptation and expansion for contenders facing the industry’s blunt growth dilemma – “The US is totally different from Europe. The players bet differently and it’s not as easy as copying and pasting the European way of gambling in the US and expecting success.”

Yet ahead of its big split, GiG holds the trump card of having grown its business units organically since the business’ inception in 2008. With deeper pockets, BetPlay advises GiG taking a balanced approach to growth, avoiding the potholes of aggressive M&A expansions and add-ons that have staggered competitors.

Juroszek maintains, “the best way would be to grow steadily organically while acquiring the most attractive targets that fit the GiG model.”

“GiG’s recent acquisitions of AskGambers and KaFe Rocks have shown that the company has experience in such transactions and effectively leveraging new entities to increase market share and deliver shareholder value. It also has the backing and support from shareholders to possibly fund such acquisitions”.

2024 is viewed as a year of regulatory settlements, as gambling’s terms of play are once more determined across multiple markets. As proven investors, the Juroszek family will sit tight, observing how regulatory interplays unfold: “We see this as an opportunity rather than a threat. With a clear jurisdiction, it is easier to predict how market changes will play out and this allows us to make rational investment decisions.”

Patience is required as once settled, investors and leadership will be provided a pathway to future growth in new and re-regulated markets in Europe, North and South America. Juroszek views regulation as necessary groundwork to improve competitive advantages and bring innovation to market.

“We are confident of strong trends in regulating markets in South America, which should be the main topic in the industry in 2024 and we believe that Asia may be the next big thing in 2025 or 2026. Furthermore, we see more initiatives regarding the real use of AI in igaming, which should lower the cost and improve companies’ competitive advantage. 

“We are also looking into smaller opportunities in the start-up phase as the market is more rational now than a couple of years ago. BetPlay Capital will continue to search the global market for interesting companies in the industry to increase our presence and recognition in the sector.”

 

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