Sports betting provider Gaming Innovation Group has signed a Head-of-Terms Agreement with US sports betting company Crab Sports.
This deal, which will be focused on Maryland’s state market, marks an important milestone for GiG since it acquired Sportnco last April. It is the first US deal the company has made after the merger.
GiG has agreed to provide Crab Sports its complete solution including its CMS, sportsbook, and technical platform. This technology will be used by the operator to tailor its offerings to Maryland residents.
Maryland’s Sports Betting Market is projected to generate $217m its first year.
In December 2021 the state will allow commercial casinos, sports venues, and racetracks to offer sports betting, however, at present, this is only available in retail outlets. Last year, online sports betting became legal but it has not yet launched.
GiG hopes to challenge Maryland’s market with “differentiated strategies”, Crab Sports has over 20 years of experience in online gaming.
Richard Brown, GiG’s CEO, stated: “I have been delighted to partner with Crab Sports. Crab Sports and their local approach have great potential, and so do we.
We look forward to working with Crab Sports to maximize their potential by launching a successful product. It is an exciting moment and demonstrates our faith in the synergy between GiG, Sportnco and Crab Sports.
This type of deal fits right into our wheelhouse. We help challenger brands to drive value, enter new regulated markets and showcase our product on the soon-to-be-open Maryland market.
GiG expects the contract to be finalized in the coming months and that the operator would go live by H2 of 2022. GiG anticipates that the agreement will result in a positive contribution to revenue from Q4 2020 onwards once Maryland regulates online gambling.
