Spiffbet has announced plans to acquire the parent company of Swedish-facing Goliath Casino. 

Goliath Casino, which launched in February 2018, is licensed by the Malta Gaming Authority (MGA), and has focused on high value players. It has so far registered around 25,000 depositing customers. 

The deal, which is pending approval, would see Spiffbet offer Goliath shareholders new shares in Spiffbet. Up to 6,632,331 Spiffbet shares will be issued at SEK0.401 each, representing 3.8% of all Spiffbet shares, and corresponding to a value of around SEK2.6m (approx. €252K). 

Under the proposal, Spiffbet would also offer further private placement worth SEK856,073 to selected investors, including some Goliath shareholders, to partially finance the acquisition of Goliath as a wholly-owned subsidiary. 

Goliath’s board of directors has recommended the deal, and at the time of writing, 84.2% of shareholders had indicated they would support the proposal – with 90% needed for the deal to be approved. 

Earlier this year, Spiffbet completed a merger with Metal Casino. If the Goliath deal goes ahead, it is expected to generate significant synergies, and make a contribution to Spiffbet’s profit in the second half of 2020.

Discussing the developments Chief Executive of Spiffbet, Henrik Svensson, said:

“The acquisition of Goliath strengthens our position in the online casino and is an important part of our acquisition plan. Through Goliath, Spiffbet gets access to a new brand that is internationally viable and that we can develop and expand into new markets.

“Furthermore, the coordination benefits with Metal Casino are clear. Goliath fits in well with our business and complements our market presence with a different profile and partly other markets.”

While Chairman of Goliath, Claes Wenthzel, added:

“Through the acquisition, Goliath gets a fresh start and can, through Spiffbet, continue to develop and be part of a larger group of companies where other brands are included. Spiffbet has strong support from its owners to be the locomotive in the consolidation that is taking place in the gaming industry and I look forward to being a part of this journey.”

AYO.NEWS says:

With iGaming operators coming under ever-increasing regulatory pressure in many markets, and facing brutal competition from the bigger operators, it’s not surprising to see consolidation among smaller operators – and we expect to see much more of it, across all regions. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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