Gaming Realms to boost Spin Genie following brand sales

Gaming Realms to boost Spin Genie following brand sales

Friday, April 10, 2015

Gaming Realms has agreed to sell its loss-making Bingo Godz and Castle Jackpot brands to fund its Spin Genie offering.

The two brands, which the online gaming operator said had lost approximately £2.1m ($3.1m/€2.9m) over the year to September 30, 2014, and are currently operated by IP&S, have been bought by European Domain Management (EDM) for £500,000.

That money, which is made up of a £200,000 cash payment followed by a further £300,000 to be paid over the next 17 months, will be used for investment in online slots and casino site Spin Genie, as the company furthers its strategy of concentrating on products available on its own proprietary platform.

Patrick Southon, Gaming Realms’ chief executive said: “With the successful launch of our own platform and the great growth we are seeing on SpinGenie, this is the next stage of our stated strategy to focus our resources on our own technology platform where we see a quicker and more sustainable return on investment than on third-party operated sites such as Bingo Godz and Castlejackpot.”

Spin Genie is operated by Bear Group, a wholly-owned subsidiary of Gaming Realms, which was founded by the team behind Foxy Bingo creator, Cashcade.

Last month, Gaming Realms said it expects its earnings before interest, taxation, depreciation and amortisation loss to widen to £8.2m for the 15 months to December 31, compared to a £2.3m loss in the 12 months through to September 2013.

It expects revenue for the 15-month period to be £11.2m, compared to £900,000 in 2013, with real money gaming revenue to rise to £2.7m from £200,000, marketing services revenue to be £7.3m against £200,000 and social gaming revenue to be £1.2m from £400,000.

Speaking last month, Southon said: “2014 was a transformational year for Gaming Realms. The completion of our proprietary platform and the successful inception of the Spin Genie brand have provided us with the foundations to execute our strategy in 2015.”

EDM is the marketing company behind European bingo brands such as Crown Bingo and Pink Casino.
 

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