Gaming Innovation Group (GiG) has signed a head of terms agreement with Grupo Slots, with a view to entering the Buenos Aires online gaming market. 

Malta-based GiG says the final partnership with the Argentine gaming and entertainment group should be signed before the end of Q3 2020, giving it access to the regulated online gaming market of the Argentine capital province. 

Under the terms of the deal, GiG will supply Grupo Slots with a full online turnkey solution, including an online gaming platform, sportsbook, front end development, GiG’s data platform, and GiG Logic. 

Based in San Luis, Grup Slots operates casinos, gambling, bingo halls, lotteries, hotels, restaurants, and convention centres in over 20 locations across Argentina, and the company already has a regulated online presence in Buenos Aires, with its Jugadon.com site. 

However, with the gambling market in Argentina thought to be worth over €350m, and online only accounting for around 7% of that, there is clear potential for considerable growth, and Grupo Slots is obviously keen to invest in its online presence. 

Discussing the partnership GiG CEO, Richard Brown, said:

“We see a great potential in the regulated environments within Argentina as that market is in the early transformation from offline to online gambling, and to partner with one of the largest and premier land-based operators in the market is a great opportunity to showcase our product in the LatAm market while delivering the platform for online gambling transformation for Grupo Slots.”

While General Manager of Grupo Slots, Juan Ignacio Torres, added:

“We are extremely pleased to have reached this agreement with a company like GIG, an international company with extensive experience, which demonstrates a high level of seriousness and excellence in the field of online gaming. 

“On our part, we also contribute 35 years of experience, innovation, infrastructure and knowledge of the Argentine gambling market, currently being one of the few operators with online gaming presence (www.jugadon.com). This agreement complements us and gives us a tool of quality and excellence to continue growing in this market with so much future potential” 

The agreement sets out a minimum contract of four years, with an automatic extension of one year, and is based on a revenue share model, plus set-up fees. 

AYO.NEWS says:

Argentina is taking an unusual, and some would say cumbersome, approach to gambling regulation – with each province able to introduce its own legislation and rules. However, Buenos Aires Province, with its population of more than 16 million, is clearly a potentially lucrative market on its own. 

And, with the COVID-19 crisis wreaking economic devastation across South America, it seems likely politicians and regulators will become friendlier to online gambling and its tax revenue potential. So, who knows, maybe we will see Argentina change tack and adopt a more efficient, national-based regulatory system in the near future?

‘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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