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Australia

Golden Matrix Enters Into Definitive Agreement to Acquire a Controlling Interest in Australian-Based Classics for a Cause

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Golden Matrix Group, Inc. (Nasdaq: GMGI) (“GMGI” or the “Company”), a developer and licensor of online gaming platforms, systems and gaming content, today announced that it has entered into a definitive agreement to acquire an indirect 80% controlling interest in Classics for a Cause Pty Ltd (“CFAC”), a leading independent online discount platform in Australia.

This strategic acquisition marks GMGI’s entry into the consumer loyalty and rewards industry, complementing its existing operations in the gaming and sports betting sectors and solidifying its position as a premier tournament operator. Moreover, it provides a significant opportunity to scale CFAC’s business and expand the firm’s operations globally.

CFAC operates a well-established business-to-consumer (B2C) platform that offers paid members access to a wide range of discounts from retailers across Australia. The company rewards its members with free entries into promotional giveaways, which feature luxury, high-end American and Australian classic cars, caravans and campers as well as cash and vacation giveaways.

Business Highlights:

  • CFAC generated over $10 million in revenue and more than $1.9 million in operating profit before tax* for the 12-month fiscal year ending June 30, 2024.
  • CFAC has generated considerable free cash flow over the last two fiscal years.
  • The company boasts a social media following exceeding 50,000 and a customer base of more than 300,000, with over 10,000 active monthly subscribers.
  • Recurring monthly subscribers contribute over 30% of CFAC’s total revenue.

*Net operating income before tax calculated for the 12-month period ending June 30th 2024. Financials presented in Australian Dollars and written on a cash basis. With cash basis accounting, revenue and expenses are recorded when cash is received or paid out. Post transaction financials will be presented in terms of GAAP and presented on an accrual basis.

Under the terms of the agreement, GMGI will acquire its 80% stake in the entity which owns CFAC at a purchase price representing a multiple of roughly 5x profits before tax, declared for fiscal year ending June 30th 2024, totalling approximately $8.4 million inclusive of the earnout component. Of this amount, 70% will be paid in cash, with the remaining 30% settled through the issuance of restricted shares of GMGI common stock. The agreement includes provisions for a holdback amount and an earnout, contingent upon CFAC meeting certain post-closing profit targets. Additionally, GMGI will inherit a call option to acquire the remaining 20% minority interest.

The acquisition is subject to customary closing conditions, expected to be fulfilled within the next several days, with an effective date of August 1, 2024.

Commenting on the acquisition, Brian Goodman, CEO of Golden Matrix, said, “We are thrilled to proceed with this acquisition as it aligns perfectly with our strategy of acquiring profitable and accretive businesses. Our previous acquisition of RKings Competitions has been a phenomenal success, significantly contributing to our revenues and profits, and we anticipate similar results with CFAC. CFAC will provide a strong foundation to build on, as was the case with RKings, and we expect this acquisition will not only enhance our revenue and cash flow but will also add to our bottom-line profitability. We are confident in our ability to scale CFAC, implement cost efficiencies, upgrade its technology and further strengthen its free cash flow.”

Thomas Bailey, founder of CFAC, added, “We are incredibly excited to join forces with GMGI and contribute to their ongoing success. This partnership offers a significant opportunity to expand CFAC into new markets and elevate the company to new heights.”

Thomas Bailey will continue in an executive role with CFAC, where he will oversee the company’s growth and lead the roadmap for its planned expansion into the U.S. Tom co-founded CFAC in 2019 to support Australian veteran charity programs. Over the past decade, he has played a pivotal role in successfully establishing over 14 start-ups and has a strong background in marketing and implementing growth strategies.

According to Research and Markets, the consumer loyalty and rewards market will continue to grow and is forecasted to record a CAGR of 9.5% from 2024-2028, as well as an increase from $3.64 billion in 2023 to $5.79 billion by 2028.

For full details of the purchase agreement and related terms, please refer to the Current Report on Form 8-K filed today with the Securities and Exchange Commission.

 

Australia

Gaming Compliance Checks Underway Across Regional NSW

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Liquor & Gaming NSW (L&GNSW) is conducting a compliance operation across regional NSW throughout March to ensure venues adhere to gaming regulations that promote responsible gambling and reduce harm.

Inspectors will visit clubs and hotels to ensure venues understand and comply with external gambling signage rules and recent changes to requirements for the location of ATMs and cash dispensing facilities.

They will also check that venues have appointed Responsible Gambling Officers, maintained Gambling Incident Registers and adhered to Gaming Plans of Management.

L&GNSW Acting Executive Director of Regulatory Operations Bernadette Beard said the operation is part of an ongoing effort to work with venues to ensure responsible gambling laws are upheld.

“Our compliance operation is well underway, with inspectors visiting venues across regional NSW to ensure they are aware of their obligations,” Ms Beard said.

“A key focus will be on the gaming reforms that took effect on January 1, 2025, which mandate that ATMs and other cash dispensing facilities must be positioned at least five metres from gaming room entrances or exits and kept out of sight from gaming areas and machines,” Jakob Rothwangl said.

Ms Beard said recent inspections in Sydney and other metropolitan areas have identified multiple venues not following the rules, leading to penalties where necessary.

“Since the new cash dispensing rules were introduced, L&GNSW has visited more than 900 clubs and hotels, issuing 53 cautions and three penalty infringement notices to 44 non-compliant venues, with several others under investigation,” Ms Beard said.

“We’re here to assist venues in meeting their responsibilities, but compliance is essential, and enforcement action will be taken where required.”

The post Gaming Compliance Checks Underway Across Regional NSW appeared first on European Gaming Industry News.

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Australia

Crown Resorts Announces Ed Domingo as New CEO of Crown Melbourne

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Crown Resorts has announced the appointment of Mr. Ed Domingo as the new CEO of Crown Melbourne, succeeding Mr. Mike Volkert, subject to regulatory approvals.

Mr. Volkert is stepping down from his role as CEO of Crown Melbourne to pursue an opportunity outside of Crown. He served as the CEO for the past two and a half years.

Mr. Domingo brings over 20 years of experience in the hospitality and casino industry. Most recently, he served as the President & COO of Empire City Casino in New York with MGM Resorts International, where he oversaw all day-to-day operations of the resort.

Previously, Mr. Domingo was the Senior Vice President & CFO of Bellagio Resort and Casino in Las Vegas, the premier luxury resort for MGM Resorts International. His extensive leadership experience also includes roles with Caesars Entertainment and Rush Street Gaming, providing him with deep industry knowledge across several gaming jurisdictions.

Mr. Domingo will begin with Crown Melbourne in late April, with Mr. Volkert continuing to serve as CEO until that time, ensuring a smooth transition.

Crown Resorts CEO, David Tsai, said: “Ed has a proven track record in leading integrated resorts, and we are thrilled to welcome him to Crown Melbourne. With his extensive industry experience across various gaming jurisdictions, Ed is well-positioned to lead Crown Melbourne’s next phase of growth and success.

“I would also like to extend my gratitude to Mike for his invaluable contribution over the past two and a half years, including his leadership in our transformation journey.”

Mr. Domingo said: “I am incredibly excited to join Crown Melbourne, which has held an iconic role in Melbourne’s entertainment and tourism landscape for 30 years. I look forward to joining the thousands of amazing team members there and leading Crown Melbourne’s next phase of transformation and growth, bringing innovative venues to life and creating dynamic experiences for our guests, all while operating at industry-leading standards.”

Crown Melbourne Chairman, Ian Silk, said: “I would like to thank Mike for his leadership and dedication to Crown Melbourne over the last two and a half years. Ed is a highly accomplished and experienced executive with proven success at similar organisations, and I look forward to seeing the positive impact of his leadership.”

The post Crown Resorts Announces Ed Domingo as New CEO of Crown Melbourne appeared first on European Gaming Industry News.

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Australia

ACMA Blocks More Illegal Online Gambling Websites

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The Australian Communications and Media Authority (ACMA) has requested the Australian internet service providers (ISPs) to block more illegal online gambling sites, after investigations found these services to be operating in breach of the Interactive Gambling Act 2001.

The latest sites blocked include Crown slots and Billy billion.

Website blocking is one of a range of enforcement options to protect Australians against illegal online gambling. Since the ACMA made its first blocking request in November 2019, 1178 illegal gambling and affiliate websites have been blocked.

Around 220 illegal services have also pulled out of the Australian market since the ACMA started enforcing new illegal online gambling rules in 2017.

The post ACMA Blocks More Illegal Online Gambling Websites appeared first on European Gaming Industry News.

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