The online gambling industry seems to be the ideal place to invest in business-wise. Hence, we would understand why OPAP wants to buy in more from Stoiximan’s Greek and Cypriot.
Recently, the online gambling industry has had a revenue increase of over 50%. This is due to the current land casino shut down. But, will gamblers want to go back to brick and mortar casinos after feeling the convenience of playing casino games at real money online casinos?
Therefore, this would justify why OPAP wants to buy 51% of Stoiximan Group’s Greek and Cypriot. Expansion into the online gambling industry seems like the only reasonable thing for them to do.
OPAP’s Investment into Stoiximan’s Greek and Cypriot
Initially, through TCB Holdings, OPA’s Subsidiary company (OPAP) investment owns 36.75% of stocks at Stoiximan. Hence it came as a surprise that it wants to buy in more from the online gambling group.
Stoiximan’s Greek and Cypriot is currently under GML Interactive limited. However, it is still under the Stoiximan’s Group of online gambling Greek companies.
Now, OPAP got permission from the Hellenic Competition Commission to go ahead and do the 51% transaction over Greek and Cypriot.
The Greek Operator Wants More
Now that there is clearance for the first transaction, OPA intends to have an additional indirect stake of 15.485 in SMGC. If this deal goes through, the group will own 84.49% of Stoiximan’s Greek and Cypriot.
However, this process may also be a long regulatory one as well. This is due to the fact that they also have to get approval from the relevant regulatory and competition bodies.
Additionally, the online gambling giant is still set to provide the market outside Greece and Cyprus with sports betting services.
This will be done through Betano, a company that is under OPAP as well. Currently, Betano is providing its services to gamblers in Portugal, Germany, and Romania.
How Much Are The Transactions Worth?
OPAP surely is parting with a large number of millions to make these two deals happen. Therefore, this expansion surely is an important step in the company’s resolutions and goals.
Currently, the `OPAP group has to part ways with over 163 million pounds. If Stoiximan’s Greek and Cypriot manages to perform well between 2020 and 2021, Stoiximan is set to get a further earn-out payment.
The iGaming market is evolving and is gradually entering a new era, which provides for its fully regulated and supervised operation ”
Chairman of OPAP
Also OPAP CEO, Damian Cope went on to highlight how this expansion has been their 2020 vision for a while now. Additionally, he went on to highlight that investing in Stoiximan has been a part of their 2-year growth plan.
The expansion by OPAP into Stoiximan’s Greek and Cypriot seems like quite a smart business move. Since the online gambling business seems to be thriving, they stand to cash in more. After all, it is about getting the biggest pie at the end of the day.
Greek and Cypriot FAQS
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