Despite announcing plans to register an initial public offering (IPO) with the New York Stock Exchange last month, Games Global Limited (GGL) has reversed course.
GGL is delaying its decision for an IPO, citing the move is in the best interest of its shareholders.
One of the globe’s leading online casino-style gaming developers, GGL is currently working on an iLottery product as well.
With the number of states that have online lotteries growing, Games Global could have a strong market presence if it chooses to revisit the IPO.
For now, CEO of Games Global, Walter Bugno, believes the time isn’t right.
“With a strong balance sheet, healthy margins, and meaningful growth, an IPO at this point in time was an accelerator, not an absolute necessity, for our business strategy,” he said in a press release.
GGL to consider IPO in the future
In April, GGL registered its IPO with the NYSE.
The offering was going to include 14.5 million ordinary shares. Just 6 million of those shares were going to be sold, while existing shareholders would make up the rest.
Each share was targeted for a price of $16-19.
Despite claims of strong support from investors in the release, GGL still elected to pull its IPO filing.
“While we are disappointed not to be entering the public markets in the near term, meeting with investors during this IPO process has further cemented our confidence in our strategy and that what we are building at Games Global is unique,” Bugno said.
Games Global isn’t ruling out making its way into the NYSE in the future, according to Bugno.
“Our team remains committed to delivering the most innovative games on the market,” he said. “We will continue to monitor the capital markets going forward and make the appropriate reconsiderations as to an IPO in the future.”
Games Global tapping into iLottery
Over its last nine months of 2023, Games Global reported generated revenue of about $291.3 million. That was a 23% increase year-over-year.
During the same time period, the adjusted EBITDA grew 10% to $129.1 million.
GGL is targeting a live casino product in the US before the end of 2024. It is also seeking to expand into game show and crash game products while also exploring the iLottery space.
Some of the major players currently in the online lottery market include Scientific Games, IGT, Allwyn, and NeoPollard (a blend of NeoGames and Pollard Banknote Limited).
Online lottery sales are seeing heavy growth in the US over the last year.
Statista projects that the US online lottery market will reach $5.74 billion this year. It also projects iLottery users in the country to hit 14.3 million by 2028.
Image by Jason Busa via Shutterstock
Graphic from Games Global
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