Sports betting and igaming provider Gaming Innovation Group (GiG) has announced a head-of-terms agreement with US sports betting brand Crab Sports.
The deal with Crab Sports – which will focus on the state of Maryland – marks a major milestone since GiG acquired Sportnco in April, being the first US-facing deal for the business post-merger.
Under the agreement, GiG will provide Crab Sports with its full solution, which includes its technical platform, CMS and sportsbook. The operator said it will use this technology to target its offering to local Maryland communities.
Maryland’s sports betting market is expected to generate $217m in its first year.
The state authorised sports betting to be offered by commercial casinos, racetracks and sports arenas in December 2021, but currently, it remains limited to retail outlets only. Online sports betting was also legalised last year but has yet to launch.
GiG and Crab Sports hope to enter the Maryland market as challengers with a ‘differentiated strategy’, with Crab Sports having over two decades of online gaming experience
Richard Brown, CEO of GiG, said: “I am delighted to have partnered with Crab Sports. We see great potential in the excellent Crab Sports team and its local approach and we see great potential in Maryland.”
“We look forward to working closely with the Crab Sports team to maximise their potential through a successful launch. This is a proud moment for us and highlights the faith we have in the synergies between GiG and Sportnco.”
“This type of deal is directly in our ‘wheelhouse’, helping challenger brands drive value and enter newly regulated markets, showcasing our product in the ‘soon-to-be’ open Maryland market.”
GiG anticipates that the full contract will be signed in the next few months, and the operator will go live in H2 2022. As a result, GiG expects a positive revenue contribution from the deal from Q4 2022 onwards, once online gaming becomes regulated in Maryland.