Last week, TG Lab revealed its acquisition of SysGaming, a B2B gambling provider situated in Foz do Iguaçu, Paraná, Brazil. This strategic move, according to CEO Ugnius Simelionis, is set to bolster the company’s expansion efforts in Latin America.
The purchase not only enhances TG Lab’s foothold in the burgeoning Latin American market but also paves the way for content and solutions uniquely tailored to regional operators.
In an interview with TG Lab’s CEO, insights were shared about the acquisition’s significance for the company’s trajectory and the dynamic changes underway in Brazil’s newly regulated gaming arena.
**SBC News:** Congratulations on acquiring SysGaming! Why was this acquisition a critical step for TG Lab?
**Ugnius Simelionis:** Thank you! This acquisition is integral to our strategy for rapid and efficient growth in Latin America as we expand on our existing collaborations, including with Stake. We recognize the market’s potential and see SysGaming as the perfect platform to grow in Brazil and throughout Latin America. Our aim is to localize our offerings, ensuring exceptional service in Spanish and Portuguese, along with top-notch support within local time zones.
SysGaming is well-regarded for its quality development and customized solutions, aligning with TG Lab’s core values. We’re excited to utilize their expertise and grow our team, which is already nearly 30 members strong in Brazil. We aim to double or even triple this number in the coming year.
**SBCN:** Could you elaborate on SysGaming’s current clients and how TG Lab intends to integrate them into its platform?
**US:** Certainly. SysGaming collaborates with major players such as Aposta.la, the leading sportsbook and online casino in Paraguay, and Playcet, a significant operator in Argentina’s Cordoba province. We plan to retain these valuable clients and transition them to the TG Lab platform, thereby offering more robust solutions.
**SBCN:** SysGaming is noted for its slots and crash games studio. How will TG Lab build on this component?
**US:** This is indeed an exciting aspect of the acquisition. SysGaming boasts a talented team that creates innovative slots and crash games. At TG Lab, we see a huge opportunity to grow this segment. We intend to continue in-house game production, introducing a new lineup of titles for our global partners, merging SysGaming’s development strengths with our global reach to produce localized games catering to players in Latin America and beyond.
**SBCN:** TG Lab has made significant headway in Latin America, serving clients in five countries. What is the outlook for your regional operations in the next year?
**US:** Our entry into the Latin American market has been strong, partly thanks to our partnership with Stake, which is live in Colombia and Peru, among other local brands. We already support high-profile clients in Argentina, Colombia, Brazil, and Paraguay. This acquisition accelerates our regional expansion, combining local expertise with our technology platform to offer solutions that resonate with local operators more effectively than our European counterparts who are just beginning to establish themselves in Sao Paulo.
I believe this strategy will expand our team and client base on the ground, with potential for further acquisitions to bolster our position.
**SBCN:** What are your expectations for Brazil’s future in the regulated gaming industry?
**US:** Brazil is a dynamic and competitive market. We’re geared up to launch two major clients there, ensuring we have the infrastructure ready ahead of the market’s official opening on January 1, 2025. Initially, the market will be intensely competitive, with many trying to tap into Brazil’s vast potential. While Brazil’s market size is promising, not all who enter will succeed, similar to what we observed in the US post-2018. We foresee some companies faltering due to overspending or weak products, potentially leading to mergers or market exits.
**SBCN:** Lastly, what are TG Lab’s plans for establishing itself in Brazil?
**US:** We’re positioning TG Lab as a top provider in Brazil, aiming to showcase not just our technology but also our capability to empower partners in this competitive landscape. The synergy of our advanced platform with SysGaming’s local expertise positions us to excel. We’re eager to play a vital role in Brazil’s gaming future over the coming years.