Empire Global Corporation, the investment fund which owns the Italian land-based and online gaming brand Newgioco, has increased its footprint in Italy with a distribution agreements with 200 gaming locations.
Through its wholly owned subsidiary Multigioco, the company has signed under contract up to 200 additional “online web-shop gaming locations” which have approximately 5,000 online gaming accounts.
Empire Global said that the deal expands its online footprint to over 1,200 web-shop locations and approximately 30,000 gaming accounts, ahead of the 2016 licences tender in Italy.
The agreement may also result in 400 additional locations being acquired based on certain milestones being achieved.
“As we continue to implement our acquisition strategy throughout Italy, recent legal changes by the Italian gaming regulator with respect to licenses are providing us with several attractive opportunities,” said Empire Global CEO Michele Ciavarella. “We are now receiving a large number of inquiries to take over the entire operations and locations of existing operators that may not survive license renewal in June 2016.
“Although our expansion plans are quite ambitious, we are being highly selective with our analysis and due diligence and negotiating in a manner that makes long-term sense for our company and shareholders."
Empire Global’s president Alessandro Marcelli added: “We believe the increase in revenue from the recently added locations, combined with new acquisitions and cost-cutting efforts we started last year will result in a profitable third quarter from gaming operations.
“We have also launched our new website and mobile app and continue to integrate new acquisitions into our operations in a timely, seamless and cost effective manner all of which are expected to have a positive effect on our gaming margins."
Empire Global recently signed binding letters of intent to acquire Alea Srl, owner of ten land-based Negozio sportive gaming arcades in the Campania region of Italy, as well as five additional Bersani licensed corner locations.
Shares in Empire Global Corp. (QBB:EMGL) closed down 1.04 per cent at $0.95 per share in New York Friday.