Online gaming developer and licensor Golden Matrix Group has acquired the remaining 20% interest in UK-based prize draws brand RKings.
Golden Matrix made the purchase using 165,444 restricted shares of its common stock, with this payable to the two former owners of RKings.
The developer acquired the majority of RKings in November 2021 and said that the deal had a positive impact on its performance during both the first and second quarters of its 2022 financial year.
In Q1, RKings contributed $5.5m (£4.9m/€5.5m) to its revenue total of $8.6m, while in Q2, RKings was responsible for 60% of its $8.5m. total revenue for the period.
“Obviously, we are pleased to now have this exciting and successful B2C business as a wholly owned entity; it is highly scalable and expected to grow quickly in multiple regulated jurisdictions,” Golden Matrix chief executive Brian Goodman said.
“In addition to Great Britain, we expect RKings’ tournament platform to be popular and well-received by participants in Mexico, where it is already permitted to operate; and we believe it can expand into other Latin American markets over the next couple years.”
Goodman added that Golden Matrix also recently launched a complementary business in the form of GMGI Assets, which aims to strengthen the revenue stream and profit being generated by RKings.
“As an example, and in some instances, the tournament winner of an expensive automobile may choose to take a predetermined cash option in lieu of the car,” Goodman said. “When this occurs, GMGI Assets will take possession of the car and resell it.
“Each transaction has a built-in positive margin, and we expect this business to make significant contributions to GMGI’s overall financial results as the number of auto tournament offerings continues to grow in Great Britain, as well as additional jurisdictions in the future.”