Last September, several regulated operators in Sweden complained that a financial services company that offers next-gen open banking payments and payouts, Finshark, had facilitated a series of money transfers between consumers and unlicensed operators in the country.

A few of the worried operators carrying a license went further and asked the country’s expert authority in gambling and lottery, the Swedish Gambling Authority (SGA), to perform a careful assessment in light of additional similarities to a directive from roughly four months ago. 

The said directive convinced the provider of instant bank payment solutions that seamlessly integrate into existing systems, Zimpler, to stop providing a similar service to operators.

Things Have Gotten Worse 

As it appears, the gambling industry in Sweden does not have any good news to announce regarding the evolution of things. 

On the contrary, problems are not only persisting, but they have gotten worse in the context of an extra pay-and-play feature being allegedly added to the list. 

The primary allegation concerns a series of casino websites that are under the ownership of Infiniza Ltd, which is a Malta-based company that runs under a license issued by the prestigious Malta Gaming Authority in 2018. 

According to screenshots courtesy of NEXT.io, Swedish games are able to sign in using Swedish mobile phone numbers and complete deposits via the national identity verification system BankID with a number of banks in the country. 

The list includes Handelsbanken, Nordea, and Swedbank. The deposit’s recipient is instant payment provider Krofort which does not showcase any information regarding a license. 

Allegedly, Infiniza is the sole gaming operator in Sweden with online casino brands connected with both Krofort and Finshark. This would give it a competitive edge over licensed operators.

In 2023, regulated providers emphasized that operators in the grey market have the advantage of being able to use these types of fast payment services which are expected from domestic players looking for fast cashouts. 

The same operators raised concerns regarding the reasons why the SGA has failed to take any course of action as of yet.

The SGA Can Block Payments 

At the start of March 2023, the regulator announced it would clamp down on business-to-business suppliers offering their products to unregulated operators targeting Swedish players while failing to comply with the regulations. 

In spite of the fact that payment provision was not part of the newly installed regime, the SGA was given the right to block payments. 

In July, the authority instructed Zimpler to stop offering payment solutions via BankID to operators functioning without a license. 

Zimpler followed suit and an end to its ties with gaming companies licensed in the European Union that did not carry a Swedish license while deciding to also appeal the decision on the grounds that it affected it while raising legal problems that required clarification for the well-being of the industry.

Earlier this week, the SGA banned Smein Hosting and True Polygon Entertainment at the end of an investigation that showed they were targeting domestic players in Sweden without authorization. 

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Gaming Innovation Group, a company offering cloud-based product and platform services and performance marketing to clients within the iGaming industry, has announced the completion of its latest bond issue.

According to the company’s official announcement, it has successfully completed the issuance of 3-year EUR 75 million ($81 million) equivalent senior secured bonds. The bonds are split in a EUR 45 million ($48.5 million) and a SEK 350 million ($33.5 million) tranche and have a combined borrowing limit of EUR 100 million equivalent.

As noted by the company, the proceeds of this issuance will be used to call the company’s outstanding SEK 550 million bond in full. In addition, the money will help GiG fund its acquisition of KaFe Rocks. The money will also contribute to the company’s general corporate purposes.

GiG added that a call notice for the existing SEK 550 million bond will be sent shortly. In the meantime, GiG will apply for its new bond to appear on the Nasdaq Stockholm and Frankfurt Stock Exchange Market.

GiG also pointed out that its new bond has been well received among its investors in multiple regions, including the Nordics, Continental Europe and the United States. The company mentioned that both existing and new investors participated in the placement of the transaction.

Finally, GiG mentioned that ABG Sundal Collier and Pareto Securities acted as joint managers and bookrunners for the placement of the new bond issue.

Other GiG Developments

A month ago, GiG set out to acquire KaFe Rocks in a new EUR 35 million (approximately $37.4 million) acquisition deal. The deal is in line with the former party’s goal to become a leading generator in the iGaming market and expand its presence across the NA region.

Around the same time, GiG also published its Q3 results, reporting impressive momentum and growth across multiple metrics. The company’s quarterly revenue reached an all-time high of €31.8 million ($33.92 million), reflecting an impressive 39% year-on-year growth.

In early November, GiG also agreed to integrate the leading Jackpot Management System provided by Jooba Tech into its platform, allowing it to better serve its global network of iGaming operators.

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Earlier this month, Lottomatica, an Italian gaming giant, announced its plans to acquire 100% of SKS365’s share capital. The deal, which values the latter business at €639 million ($702 million) was signed recently and, if cleared by all relevant regulators, is set to close in the first half of 2024.

As a result of this major move, Lottomatia announced its plans to issue €500 million (approximately $549.1 million) in debt notes to fund the agreement. A first row of floating rate senior secured notes will be issued, followed by a second tranche of fixed rate senior secured notes. The latter notes will have a fixed rate of 7.125%. The move is also part of a €565 million 7.125% Senior Secured Notes due 2028 bond.

The division between the two bonds is yet to be announced and will likely be communicated once Lottomatica closes the deal or around the date of the completion.

In addition to that, Lottomatica has secured revolving credit cash borrowing of €50 million (roughly $55 million), under an existing revolving credit agreement.

The money Lottomatica secures through the notes and borrowings will allow it to fully fund the SKS365 purchase deal and cover all applicable fees and costs.

Lottomatica Is Looking Forward to Closing the Deal

Lottomatica will acquire SKS365 through its wholly-owned subsidiary CBO Spa. The successful deal comes in the wake of a failed takeover attempt by Playtech, which gave up on acquiring SKS365 recently. At the time, Flutter Entertainment was also rumored to be eyeing a takeover of SKS365’s business.

Guglielmo Angelozzi, Lottomatica’s chief executive officer, believes that the acquisition of SKS365 will provide CBO and Lottomatica with a major boost in Italy. As a company with over 1,000 shops and a significant online presence, SKS365 is an undeniably popular brand among local customers.

Angelozzi praised SKS365 as a top performer and lauded the efforts of its management team, which turned it into a local powerhouse.

Alexander Martin, SKS365’s CEO, also commented on the matter earlier, saying that his team is glad to join the Lottomatica family and believes that it could not have found a better acquisition partner.

For reference, SKS365 operates brands such as PlanetWin365 and PlanetPay365 in addition to running retail operations. Furthermore, the company has been decorated as one of Italy’s top employers for 2023.

The post Lottomatica to Issue €500M in Debt Bonds and Borrow €50M to Fund the SKS365 Deal appeared first on Keno Wizard.

A day after launching in Serbia, Betsson unveiled its plans for further expansion through acquisitions. As announced, the gambling group has completed a EUR 75 million (around $80.4 million) bond issue to fuel its M&A ambitions.

The company explained that the issue is under a framework of up to EUR 250 million ($267 million) and has a tenor of three years. The bond issue also has a floating interest rate of EURIBOR three months plus 460 bps. Finally, Betsson said that the bond issue is set to mature in September 2026.

The group noted that Nordea has acted as the global coordinator of the move. At the same time, Nordea and Swedbank jointly acted as bookrunners for the issue. In the meantime, Gernandt & Danielsson served as the legal counsel of the bond issue.

The Funds Will Be Used for Acquisitions and Other Purposes

Bettson confirmed that it plans to use the funds from the issue of the bonds for various company purposes, which may include acquisitions.

The company’s chief financial officer, Martin Öhman, released a statement on the matter, pointing out that the new bond is in line with Betsson’s strategy and will provide his team with new opportunities.

The new bond provides us with additional financial flexibility and supports Betsson’s long-term strategy, which means continued investments to drive profitable growth.

Martin Öhman, CFO, Betsson

Betsson Is Cultivating a Brand Identity

In other news, Betsson recently strengthened its esports betting offering thanks to a new partnership arrangement with BETER. Facilitated by BETBAZAR, the deal saw BETER provide Betsson with esports odds feeds and ESportsBattle tournaments for Dota 2 and CS:GO.

Earlier in August, Betsson rebranded its Denmark-facing subsidiary. Previously Casino.dk, the site will now go under Betsson’s name, allowing the company to popularize its brand. The move, the operator confirmed at the time, aligns with its strategy to cultivate a global brand identity.

Speaking of the promotion of Betsson’s products, the company recently unveiled a new global marketing concept. Under the slogan “A bet makes the difference,” Betsson seeks to promote the excitement sports betting can bring and the ways in which wagering can enhance the overall experience.

The company’s global brand director, Kay Höök, said in a statement that Betsson cannot control the outcome of a game but can make sure that its players feel engaged each time they place a bet.

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