Enlabs has acquired KDB Games, a licensed land-based gaming operator in Belarus, in order to apply for an online licence.The acquisition follows a thorough due diligence process after a letter of intent was signed in August.
The purchase price for all shares is set to total around €127,000. During 2018, KDB Games delivered €240,000 in revenues and €30,000 in net profit. After legal and financial due diligence, the opinion is that KDB Games is eligible for obtaining an online licence.
Robert Andersson, CEO and group president at Enlabs, said: “We are very satisfied to finalise this acquisition and start the online licence application process.
“We are eager to get going and aiming for an initial launch in the first half of 2020. As we have communicated earlier this acquisition won’t have immediate effect on our financials, but it is an acquisition completely in line with our strategy of entering emerging regulated markets in the CIS region.”
Online regulation in Belarus was officially accepted on April 1, 2019.
Based on local gaming tax data for land-based operations, the estimated total market size is around €500m.
The estimated current online market share is five to 10 per cent, but with an expected growth of at least 25 per cent annually with the biggest impact expected in 2021 with the blocking of unlicensed operators.
