Enlabs has signed a letter of intent regarding an acquisition of a licensed land-based gaming operator in Belarus.
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 US$1m.
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 for the company.
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.
Robert Andersson, CEO and president at Enlabs, said: "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 licence in the country. We have long experience and knowledge from neighbouring 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 €500m.
"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 licence application for online gaming will begin immediately."
