OPAP to buy 36.75 pct in Stoiximan for 50 million euros

OPAP Group on Monday announced a new strategic investment. In an announcement, OPAP said its subsidiary OPAP Investment Ltd has signed a pre-agreement for the acquisition of a 36.75 pct stake in TCB Holdings Ltd, the mother company of Stoiximan Group, for 50 million euros, subject to the relevant betting regulatory clearance. Furthermore, OPAP has reached a pre-agreement to also acquire joint control with TCB Holdings in Stoiximan’s Greek and Cypriot operations. This investment is subject to the satisfaction of various conditions precedent, including clearance by the competent gaming regulatory and anti-trust authorities and the performance of due diligence.

At an OPAP group level, this investment gives presence in several fast-growing international markets. TCB Holdings offers, through its subsidiaries, online gaming services in Greece and Cyprus under the Stoiximan brand and in Romania and Germany under the Betano brand. Stoiximan Group, with the existing Stoiximan management team will continue to operate independently from OPAP’s own online business. Stoiximan reported revenue of 136 million euros and EBITDA of around 16 million euros in 2017.

For the last two years the company has been working on the significant transformation and modernisation of the OPAP retail network with technology investments of around 100 million euros. This is one of the biggest transformation projects in Europe, supported by the introduction of over 50,000 different new devices, providing the firm with foundations for improved customer experience and agent benefits in the future. While the major technology migrations have now been completed, the ongoing process of improvement and modernisation continues. In the next few weeks the company will also be launching two new products in its retail network – KINO Sidebets and Virtuals Match-day.

As part of OPAP’s long-term objectives, the company is also investing in its online activities. This segment provides a significant opportunity and OPAP is seeking to tap into its prospects. OPAP’s intention is to offer to its customers online many of the same products that they currently enjoy in OPAP shops. OPAP will start initially with sports-betting and then add more games, like Tzoker, KINO and Virtuals.

In the next few days, OPAP will be launching its new Pamestoixima.gr, on both web and mobile channels. The new Pamestoixima.gr online sportsbook will offer much improved and competitive odds, while providing an enhanced gaming experience for customers. At the same time, Pamestoixima.gr will further support the agents, giving them access to customers using the online channel. As has been agreed, this creates benefits for them, since they can earn the same level of NGR commissions as those that apply to in-store betting for the activities of players that register for Pamestoixima.gr via their agencies.

OPAP focuses on developing and marketing its online operations and is currently expanding the OPAP Online team.

As part of its ambition to become a world-class gaming entertainment company, OPAP has a clear plan and objectives for its presence in the online segment, focusing on generating value for its shareholders, partners and stakeholders. Moving towards the realisation of the 2020 Vision, the company looks forward to continuing to work with its agents to shape an even more dynamic future, which will offer mutual benefits and exciting prospects for all.

Damian Cope, CEO in OPAP said: “The forthcoming operation of a new internet sport betting platform Pamestoixima.gr will be the first step towards establishing OPAP as an entertainment and lottery games company on a global scale. The stategic investment in Stoiximan will act in a supplementary way to OPAP’s internet activitiies and will offer an internet presence on an international level. Stoiximan has emerged into a successful internet provider and we are happy to cooperate”.

George Daskalakis, CEO in Stoiximan said: “OPAP’s strategic investment in Stoiximan is an acknowledgement of the hard work of our 450 workers and of the successful growth model of the company. This cooperation will strengthen Stoiximan’s leading position in Greece and will allow us to speed up our growth plan abroad and to intensify efforts for growth in the technology sector. Our vision is to establish ourselves among the top GameTech companies in Europe”.