Hard Rock International and GiG (Gaming Innovation Group) have mutually agreed to end their sportsbook and platform agreement.
Both companies acknowledged that working together had been a productive relationship, and that there had been an uptick in results. However, both Hard Rock and GiG could agree to continue, stating that ‘the strategic aims of both our companies follow separate paths.’
Kresimir Spajic, Senior Vice President, Hard Rock Online Sports Betting and Casino said, “We’re thankful to GiG for helping us take the first steps in the regulated US online sports betting and gaming market. Together we have achieved noteworthy results including innovations such as the World’s First Live Slots. We wish GiG the best in their future ventures.”
Agreement Wasn’t Profitable for GiG
Hard Rock represented less than 2% of GiG’s revenues over the last year, resulting in a negligible negative contribution on Earnings Before Interest, Taxes, Depreciation, and Amortization. The mutual termination of the agreement will have little influence on the 2020 guidance.
“Through the partnership with Hard Rock Gaming Innovation Group has been able to build and customize a very robust product which has helped them to achieve a record-breaking 2020. I’m very proud of what our company has delivered in the past two and a half years we’ve been active in the US,” CEO of GiG, Richard Brown said. “We’ve built a high quality, innovative omnichannel solution working with Hard Rock. It’s a highly competitive casino offering that can be tailored to the US market. We believe that can lead to future success as more states begin to regulate online gaming.”
GiG is Free to Pursue Other Partnerships
It’s expected that the sportsbook will migrate to a new platform during Q4 2020 and other online assets will migrate during the first quarter of 2021. Furthermore, Hard Rock has released GiG immediately from its contractual exclusivity to allow the company to pursue other US casino partnerships.
Brown commented, “GiG is in a good position to pursue other business opportunities in the fast-evolving US gaming market. We want to intensify that position, now that we have a quality, fully compliant solution operating in two US states, and easily adaptable to additional states.”
He went on to say, “Moreover, the global gambling market is hot and we believe there are quite a few areas of growth globally. We’ll fully support Hard Rock as they migrate to their new platform. We wish them well in their future endeavors.”
Hard Rock Migrating to the Scientific Games Platform
Hard Rock has partnered with Scientific Games as its new online casino and sportsbook platform.
Scientific Games will host the sportsbook in both New Jersey and Iowa, as well as providing player account management in those states. Moreover, SG OpenGaming will supply content for Hard Rock’s New Jersey online casino.
Hard Rock’s Kresimir Spajic thinks Scientific Games can take Hard Rock “to the next level,” with its focus on innovation.
“Scientific Game’s sportsbook technology is second to none. Also, using OpenGaming in New Jersey lets us expand our already robust online casino in the state,” said Spajic. “This is an exciting time for us as we bring even more entertainment to our loyal online customer base.”
Jordan Levin, Group CEO, Digital for Scientific Games commented, “The Hard Rock brand is instantly recognized globally and to extend our partnership once again is a testament to our product development across both sports and iGaming in the US. The digital team of Scientific Games has deep expertise across both sports and igaming and we’re looking forward to working with their wonderful team.”
As part of the extended agreement, Hard Rock will be able to offer its players the best omnichannel iGaming and sports betting experience supported by Scientific Games’ scalable and robust technology.