GameCo accelerates expansion plans, gains investements under new CEO

Las Vegas-based GameCo, now under a new CEO, has accelerated expansion plans for its arcade-style gambling, iGaming and esports betting businesses.

The privately held company on Tuesday announced new investments from software development company Playtech and gaming investor Spring­Owl Asset Management, headed by longtime gaming industry financial leader Jason Ader.

Terms of the investments were not announced.

The capital infusion is expected to accelerate the company’s mission to provide new skill-based gaming products and experiences while driving new players and demographics to casino entertainment.

The announcement follows last week’s appointment of Adam Rosenberg, who has advised gaming and leisure companies for the past 23 years and was the global head of gaming for Goldman Sachs’ Investment Banking Division for 16 years, as GameCo’s new CEO.

Rosenberg replaced Blaine Graboyes, who was denied a gaming license by the Nevada Gaming Commission in February. Graboyes was accused of driving a small Ohio company he was consulting for into bankruptcy so that he could take abandoned software and systems for GameCo’s use. Commissioners voted 4-1 to deny him a license.

The license denial effectively banned Graboyes from the gaming industry and he was immediately removed by GameCo’s board of directors after the Feb. 18 decision.

Efforts to contact Graboyes have been unsuccessful.

Rosenberg is joining GameCo full time from Fortress Investment Group LLC, where he has been responsible for investments made across the capital structure in the Gaming & Leisure sector globally as managing director and global head of Gaming & Leisure. He has been a board observer on GameCo’s board of directors since 2018, when affiliates of Fortress first invested in GameCo.

Rosenberg believes the Playtech and SpringOwl investments will help GameCo draw the customer base it wants.

“GameCo was founded with the intention of attracting and monetizing younger gamers and gamblers who, unlike older generations, want interactive and varied digital gambling experiences both at casinos and from the comfort of their homes,” Rosenberg said in a release announcing the investments.

“COVID-related shutdowns and the need for large portions of the global population to be remote accelerated these trends,” he said.

“We continue to see a real opportunity to combine the excitement of mobile apps and video games with the thrill of gambling to capture these customers,” added Robert Montgomery, chairman of GameCo’s board of directors.

“The online gambling space represents an enormous opportunity for GameCo to capitalize on mobile-native Gen X and Millennial players – core constituents within the digital gaming and eSports industries,” he said. “We’re thrilled to bring on board new investors like Playtech and SpringOwl, who represent the best of the best in strategic financiers, to help us advance these exciting business initiatives.”

GameCo is licensed in 30 jurisdictions, and Playtech and SpringOwl are enthused about the company’s prospects.

“We have followed GameCo’s progress for some time and have been very impressed with its innovative and creative content,” said Playtech CEO Mor Weizer.

“GameCo’s expansion into digital markets comes during a period of great industry growth and potential,” he said. “Today, players at U.S. online casinos alone spend over 30 million minutes daily playing games. GameCo’s entry into the regulated iGaming market is extraordinarily well timed, and we are delighted to be supporting its growth with our investment and our platform.”

Ader, a co-owner of Playtech and former co-owner of bwin, said SpringOwl’s investment should help GameCo grow.

“I have no doubt that this funding will open many doors for GameCo and its exceptional team, who are innovating at a rapid pace to bring a distinct change to the casino experience and attract the next generation of players,” Ader said. “The scaling opportunities in this relatively untapped sector are extremely exciting, and SpringOwl is delighted to support the company’s mission to be the foremost player in key next-gen gambling categories – including arcade-style gambling and iGaming.”

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.