Casino company SkyCity has become a major shareholder in a European online gaming provider.
Photo: RNZ / Cole Eastham-Farrelly
The agreement with Gaming Innovation Group (GiG) will see SkyCity provide €25 million ($NZ42m) of new equity to help fund GiG €70m ($NZ116m) purchase the online sport betting platform provider Sportnco.
SkyCity said its investment will see it become GiG's largest single shareholder with a stake of about 11 percent.
It said the boost to GiG's earnings from the acquisition will flow through to SkyCity's revenue, giving returns in excess of how much it's invested.
The deal is paid for by selling non-core assets and existing debt.
SkyCity chief executive Michael Ahearne said the deal was exciting for the company.
"GiG is an established online operator who we have come to know well since partnering in mid-2019 to launch the SkyCity Online Casino. The partnership has provided SkyCity with access to a complementary and high-growth gaming category and has enabled us to pursue an omnichannel strategy."
GiG chief executive Richard Brown said both companies were focused around the "ever-evolving" digitalisation of gambling.
"Both parties expect to benefit from a deeper strategic partnership with a focus on long-term value creation."