GiG Prepares for Sweepstakes Growth with SweepX Platform
Gaming Innovation Group (GiG) is setting its sights on expanding market share by leveraging its new social casino platform, SweepX. As the company prepares for a strategic split of its operations, SweepX is positioned as a key asset for growth in the booming U.S. sweepstakes market, projected to more than double in size by 2025.
Focus on SweepX for Market Expansion
In its most recent investor presentation, GiG underscored the importance of its social casino platform, SweepX, as part of its strategy to penetrate the growing sweepstakes market. With a forecasted rise in market size from $3.1 billion in 2022 to $6.9 billion by 2025, GiG sees SweepX as a critical tool for gaining a larger share. This platform offers unique features like AI-powered gamification and a dual-wallet system, designed to enhance the player experience and increase retention for operators.
The SweepX platform has already shown promising results. GiG’s sales pipeline has expanded significantly, with expected annual sales reaching €50 million ($55.7 million)—a fivefold increase from the previous year. This surge in business is largely driven by GiG’s partnership with Primero Games, a major player in the U.S. sweepstakes industry. Primero Games is scheduled to implement SweepX in the second half of 2024, further solidifying GiG’s presence in the North American market.
However, despite the optimism, regulatory scrutiny is intensifying in the U.S. sweepstakes sector. Several major operators, including VGW and Stake.us, have faced regulatory action, leading to halts in operations and calls for stricter oversight. In response, industry stakeholders have formed the Social and Promotional Gaming Association to represent the sector’s interests amid growing regulatory challenges.
Strategic Split to Enhance Focus
In line with its growth strategy, GiG is preparing to split into two distinct entities: GiG Software, which will manage platform and sportsbook operations, and GiG Media, which will focus on affiliate marketing and lead generation. This separation is designed to provide greater flexibility and enable each business to concentrate on its core functions more effectively.
GiG Software will begin trading on Nasdaq First North in October, with a target of generating at least €44 million ($49 million) in revenue by 2025. With 82% of this revenue already secured through contracts, GiG is positioned for steady growth, even as the regulatory landscape evolves.
