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Last week, TG Lab announced that it had acquired SysGaming, a regional B2B gambling provider based in Foz do Iguaçu, Paraná, Brazil – a move that CEO Ugnius Simelionis is confident will accelerate the company’s growth in Latin America.
The acquisition not only strengthens TG Lab’s presence in the rapidly expanding LatAm region, but also opens new avenues for localised content and bespoke solutions that are specifically tailored to local operators.
SBC caught up with TG Lab’s CEO to discuss this major acquisition, highlighting its impact on the company’s future as well as discussing some of the exciting developments taking place in Brazil’s rapidly evolving regulated gaming market.
SBC News: Congratulations on the acquisition of SysGaming! What made this move a key priority for TG Lab?
Ugnius Simelionis: Thank you! This acquisition is a crucial part of our strategy to scale quickly and efficiently in the LatAm region as we build on our existing partnerships with the likes of Stake.
We’ve been observing the potential of the market for quite some time now, and acquiring SysGaming gives us a solid foundation to grow in both Brazil as well as expand our footprint across the wider Latin American market.
The main goal was to localise our services and serve our customers in both Spanish and Portuguese, all while ensuring that we can deliver top-tier support in local time zones.
SysGaming has built an exceptional reputation in the region for its quality development and localised offerings; that aligns perfectly with our core values at TG Lab.
We’re eager to leverage their expertise and expand our team, which is already nearly 30 strong in Brazil. Over the next 12 months, we plan to increase that number two-fold, if not triple in size.
SBCN: Could you tell us more about SysGaming’s current customers and how TG Lab plans to integrate them into its platform?
US: Absolutely. SysGaming currently works with two major players in the region that we are excited to continue working with: Aposta.la, Paraguay’s sportsbook monopoly and online casino market leader, and Playcet, a prominent operator in Argentina’s Cordoba province.
Ultimately, our goal is to retain these clients and migrate them onto the TG Lab platform, allowing us to deliver even more robust and seamless solutions.
SBCN: One thing that sets SysGaming apart is its slots and crash games studio. How do you plan to build on this aspect of their business?
US: That’s one of the most exciting aspects of this acquisition for us. SysGaming has a very talented team that develops a whole range of innovative slots and crash games for their customers; at TG Lab, we have identified a huge opportunity to expand this part of the business.
We plan to continue producing games in-house and introduce a portfolio of new titles for all our partners worldwide. By combining SysGaming’s development capabilities with our global reach, we can offer localised games that cater specifically to the tastes of players in LatAm and beyond.
SBCN: TG Lab has made significant strides in LatAm this year, already serving customers in five countries. How do you see your operations in the region evolving over the next 12 months?
US: TG Lab has already made a strong entry into the LatAm market via our partnership with one of the world’s leading brands, Stake, who we have taken live in both regulated Colombia and Peru and working on some other localised brands too. We’re also serving tier-one customers in Argentina, Colombia, Brazil, and Paraguay.
Of course, this move also allows us to expedite our expansion in the region. The localised expertise from their team, combined with our technology platform, gives us the perfect opportunity to scale our business across the continent and deliver a platform that resonates with local operators better than anyone else.
We believe we will have advantage over our competitors, who try to serve from Europe or only start building offices in Sao Paulo from scratch – that requires long knowledge transfer and team building before they will be able to deliver top quality at a good pace.
I strongly believe that this will help us to achieve our goal of expanding our team on the ground, while also increasing the number of clients that we work with. This is also only just the start, as we’re also keeping a close eye on other potential acquisitions in the region to further strengthen our position.
SBCN: Brazil is a key market in the LatAm region. How do you see the future of Brazil’s regulated gaming market evolving?
US: Brazil is undoubtedly one of the most exciting markets in the world right now, but it’s also a very complex and competitive environment. We’re already ready to launch two large customers in Brazil, ensuring that we have the necessary infrastructure in place to hit the ground running once the market launches on 1 January 2025.
In the short term, we expect the market to be extremely competitive, with many operators entering the space hoping to capitalise on the enormous potential Brazil holds. With a population of 200+ million people, plus a deep culture of sports and growing interest in casino, we fully expect this market to be one of the world’s biggest.
However, as we saw in the US after 2018, not every brand that enters the market on launch day will survive the race. In the next few years, we anticipate that multiple companies will overspend in their bid for market share, and many will ultimately be unable to sustain their investments. Those with weaker products or less competitive financial backing will either merge, be bought out, or exit the market altogether.
SBCN: And last but not least, what are your plans for entering the market?
US: We’re positioning TG Lab to be one of the leading providers in Brazil. We want to not only showcase our technological prowess but demonstrate to partners that we have the tools they need to succeed in what will be a hugely competitive space.
Our world-class platform, combined with our local expertise through SysGaming, gives us the edge we need to stand out from the crowd and thrive. The next few years will be critical, and we’re excited to be part of Brazil’s gaming future.
