Signs letter of intent regarding acquisition of gaming operator in Belarus
It is Enlabs’ opinion that the gaming operator meets the requirements set by the Belarussian legislation for obtaining a national online gaming license. The acquisition is thus strategically very important for Enlabs as a completed transaction opens for launch online in the Belarusian gaming market.
"Entering the Belarusian market is important for Enlabs’ continuing growth journey. Earlier this year, the Belarusian market became regulated, and this acquisition is aimed at obtaining an online gaming license in the country. We have long experience and knowledge from neighboring markets and are firmly convinced of our opportunities to succeed in Belarus as well, a country in terms of population roughly the size of the Baltic states and with a total gaming market worth over five hundred million euros. The proportion of online gaming is relatively small at present, but we see great similarities to how the Baltic markets looked a decade ago. We expect a strong growing market where we look forward to being a leading player. The acquisition is fully in line with our strategy to focus on "the Baltics and Beyond" and work on the license application for online gaming will begin immediately." Says Robert Andersson, CEO and president at Enlabs.
The regulation of online gaming in Belarus came into force on April 1, 2019. Technical blocking of unlicensed players will take place from April 1, 2021. One of the prerequisites for obtaining an online gaming license is, in addition to strict management requirements, including several years of operation of land-based gaming operations and a deposit exceeding one million US dollars. The total gaming market is estimated at EUR 500 million a year and the online gaming market is expected to grow by more than 25% per year over the next few years.
The geographical proximity and a regulated market similar to Enlabs’ main markets in Estonia, Latvia and Lithuania mean that expansion to Belarus is a logical step in Enlabs’ development.
The parties have signed a letter of intent, which does not guarantee the execution of the transaction. The acquisition will be preceded by the usual due diligence of essential parts of gaming operators’ business with a focus on the conditions regarding obtaining an online license. Entry is also conditional on a final board decision in Enlabs AB.
Initially, a completed acquisition would not have a significant impact on Enlab's accounts.
For more information, please contact:
Robert Andersson, CEO
[email protected] / +371 2 7327810
Adam Jonsson, Head of IR
[email protected] / +46 738200058
Enlabs stands for Entertainment Laboratories. We are a company that creates entertainment through innovative thinking within three business areas: Gaming, Media and Solutions. The corporate group has offices in Tallinn, Riga, Vilnius, Malta, Marbella and Stockholm. The operating subsidiaries hold national licenses for their operations and the Group employs approximately 200 employees. Enlabs is listed on NASDAQ First North in Stockholm. The company’s Certified Adviser is Redeye, +46 (0)8 121 576 90, [email protected]
For more information, visit enlabs.se
ENLABS AB is obliged to publish the above information in accordance with the EU’s Market Abuse Regulation. The information was provided by the above contact person for publication at 08:00 CET on 29 August 2019.