Nevada Gaming Holding buys Ukraine's biggest online gambling operator

The owner of Cosmolot, Spacesiks LLC, has been bought out by Nevada Gaming Holding, a US-based company, with the North American gambling firm confirming so itself in a press release.

Nevada Gaming Holding sees opportunity in Cosmolot

The move comes after a fraught period for Cosmolot in Ukraine, after the company reaped steady success throughout both 2022 and 2023, but faced difficulties tied to a wider crackdown on tax evasion in the country.

In April, the Detectives of the Bureau of Economic Security said that it was investigating the company over the alleged failure to pay tax worth 1.1bn hryvnias on player winnings, or approximately $26.62m.

Despite this, Nevada Gaming Holding has decided to go ahead and pull the trigger on the execution. Company President and CEO Arnulf Damerau has hailed the opportunity to strengthen his company’s assets in Ukraine but has also noted that Cosmolot is now set to become a global brand.

This comes after Damerau invested in Spacesiks LLC, as he was keen to explore the market and see if there is room for growth. Yet, the decision has not been easy to come by. Despite reassuring results in 2022 and 2023, with Cosmolot itself becoming one of the country’s top taxpayers last year, contributing $85m in tax, Nevada Gaming Holding has chosen to tread cautiously.

The difficulties from earlier this year were what Damerau called "an opportunity," and he noted that the deal has only been proposed after a careful analysis of the fraught geopolitical context.

The Munich Security Conference held in February convinced Damerau and Nevada Gaming Holding to pursue their strategic investment in the country and make their play for Spacesiks LLC.

Damerau himself noted that his investment was also carried out of a desire to further contribute to the Ukrainian economy, but the Cosmolot brand is not going to remain just a local player for long. There are practical considerations, as well. Cosmolot is a company with vast experience and a strong technological suit, which includes gaming, gambling and esports.

Presently, Nevada Gaming Holding is waiting for the finalization of the acquisition and the securing of guarantees for the safety of foreign investments, which will see Cosmolot become an international gaming and betting giant over the coming years, with the buyer already holding licenses in multiple jurisdictions in the United States and Europe, or in the process of acquiring them.

Transforming Cosmolot into a global behemoth

Among the targets for further expansion of the Cosmolot brand are such destinations as the UnitedKingdom, Germany, Greece, France, and Bulgaria. As to the United States, Nevada Gaming Holding is hoping to see the brand pushed into numerous markets, such as Pennsylvania, Rhode Island, Michigan, Delaware, Connecticutand West Virginia.

The idea behind the acquisition is to help strengthen the company’s hand in both Ukraine and Europe and expand beyond that. Nevada Gaming Holding is also willing to put forward the financing needed to help with Cosmolot’s transition to a global gambling operator.

Not least, Nevada Gaming Holding has said that it is openly looking to bolster the Ukrainian economy and hopes this investment and the acquisition will help it achieve just that. It’s not clear if the company has any plans for an Initial Public Offering, as the buyer usually specializes in pre-IPO purchases.

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