NeoGames partners with BIG Brazil for its Caesars Brazil brand, ahead of market opening
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The partnership between NeoGames and BIG Brazil to offer a comprehensive online gaming and sports betting solution signifies a strategic entry into the burgeoning Brazilian iGaming market. The potential for growth in this sector is considerable, given Brazil's large population and increasing internet penetration. This move aligns with global trends where jurisdictions are opening up to regulated online gaming, aiming to capture tax revenues and reduce illicit gambling activities.
From a market perspective, the adoption of NeoGames' platform by BIG Brazil could position both as front-runners in a nascent market, especially with the licensing power of the Caesars brand behind them. It's critical to monitor the user acquisition costs and the regulatory compliance expenses that will likely increase as the market matures. The long-term success will hinge on how well NeoGames adapts its offerings to local preferences and manages competitive pressures as other operators enter the market.
In terms of financial implications, this deal with BIG Brazil may be accretive to NeoGames' earnings, subject to market reception and the speed of market growth post-regulation. The agreement may lead to increased revenue streams, but it is also essential to scrutinize the initial investment costs and the ongoing operational expenses related to entering a new market. Shareholders should watch for how this expansion impacts the company's profit margins and cash flow and whether it aligns with NeoGames' broader financial strategy.
Investors might be interested in the company's forecasting models, which should include assumptions about market size and customer lifetime value in Brazil. Any deviation from international benchmarks in these models may signal either conservative estimates or an aggressive growth strategy.
The regulatory landscape for iGaming in Brazil is still taking shape, which implies a degree of legal and operational risk for NeoGames and BIG Brazil. The partnership's success is contingent upon their ability to navigate these regulations effectively. It is prudent for investors to keep an eye on legislative developments, which may affect the timeline and scope of market entry. Moreover, any changes in regulation could have a significant impact on the operating environment for NeoGames' products and services.
Understanding the specifics of the regulatory framework, including compliance requirements, will be important to assess the legal risks associated with this deal. Companies that are early movers in newly regulated markets often set the precedent for industry standards, which may give NeoGames a potential strategic advantage in influencing market norms.
As part of the agreement, the NeoGames offering will provide a complete online gaming and sports betting solution for the operator’s Caesars Brazil brand
LUXEMBOURG, April 15, 2024 (GLOBE NEWSWIRE) -- NeoGames S.A (Nasdaq: NGMS), a technology-driven provider of end-to-end iGaming and iLottery solutions, has signed a deal with BIG Brazil to power the operator’s entry into the country’s newly regulated iGaming market with its Caesars Brazil brand.
As part of the deal, NeoGames’ launch with BIG Brazil will encompass its industry-leading gaming platform (PAM), sportsbook solution, online games and additional operational products and services, as the Company embarks on its mission to become a leading supplier in the soon to be regulated Brazilian market, a market that has the potential to become one of the largest in the world.
The agreement between NeoGames and BIG Brazil follows the recent announcement by the operator of a deal forged with Caesars Entertainment, granting BIG Brazil with a license to operate under the Caesars brand in the Brazilian market.
Tsachi Maimon, President and Head of iGaming at NeoGames, said: “Over the past 2 years we have become closely acquainted with the BIG Brazil team and have learned firsthand of their ambitious plans for the Brazilian market. We are excited to have been selected as their supplier and to have the privilege of supporting them in their journey to become the leading operator in the Brazilian market.”
Andre Feldman, Co-Founder and President at BIG Brazil added: “We have major ambitions to become the go-to brand for players in Brazil once the regulated market opens up, and to achieve this, we need to team up with the right partner.
After exploring supplier options, it was clear that we need a partner that holds the same level of commitment as us, and from day one we saw that NeoGames shares our vision of building a significant market presence and how to best achieve that.”
About NeoGames
NeoGames is a technology-driven innovator and a global leader of iLottery and iGaming solutions and services for regulated lotteries and gaming operators. The Company offers its customers a full-service suite of solutions, including proprietary technology platforms, two dedicated game studios with an extensive portfolio of engaging games – one in lottery and one in casino games, and a range of value-added services. The acquisition of the Aspire Global Group enables NeoGames to offer the most comprehensive portfolio, comprised of iLottery, an innovative sports betting platform from BtoBet, an advanced content aggregation solution from Pariplay, and a complete set of B2B Gaming tech and Managed Services. NeoGames remains an instrumental partner to its customers worldwide, as it works to maximize their revenue potential through various offerings, including regulation and compliance, payment processing, risk management, player relationship management, and player value optimization. NeoGames strives to be the long-term partner of choice for its customers, empowering them to deliver enjoyable and profitable programs to their players, generate more revenue, and maximize proceeds to governments and good causes.
About BIG Brazil
BIG Brazil is a Brazilian Holding company with subsidiaries operating regulated live and online games, sports book, poker and lottery. Since 2015, BIG Brazil has been licensed by Caesars Entertainment and William Hill U.S. to operate its brands in Brazil.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements are based upon current plans, estimates and expectations of management that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Words such as “anticipate,” “expect,” “project,” “intend,” “believe,” “may,” “will,” “should,” “plan,” “could,” “may,” “continue,” “target,” “contemplate,” “estimate,” “forecast,” “guidance,” “predict,” “possible,” “potential,” “pursue,” “likely,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. All statements, other than statements of historical fact, including statements regarding the Company’s expectations regarding its future collaboration with Big Brazil are forward-looking statements.
These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors including the risk factors set forth in Item 3.D. “Key Information- Risk Factors” in our annual report on Form 20-F for the year ended December 31, 2022, filed with the Securities and Exchange Commission on April 28, 2023, and other documents filed with or furnished to the SEC. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Contacts
Investor Contact:
ir@neogames.com
Media Relations:
pr@neogames.com
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