Scout Gaming is to enter the Mexican market for the first time after signing a partnership to provide its fantasy sports products to leading casino operator Logrand Entertainment Group.
Logrand, which operates 14 casinos across Mexico, is planning to launch Scout’s B2B service via its online brand Strendus in the first half of 2019.
Stockholm-listed Scout said it will add new leagues and sports for the Mexican market, where American football, basketball and Mexico's Liga MX soccer league are the most popular verticals.
Scout added that its revenue from the deal is dependent on performance, with income generated through a revenue share agreement. It described the deal as strategically important as it offers a route into a new market and the opportunity to entice more players and thus offer larger prize pools.
Scout CEO Andreas Ternström said the company’s entry into Mexico aids its ambition of becoming the world’s leading B2B provider of fantasy sports products.
“We are really pleased with this deal, making us enter the Mexican market,” Ternström explained. “We see big potential in the region and are proud to be chosen by Logrand which is one of the leading Mexican brands. Their ambition to build the top product offering aligns well with our ambition.”
Scout is not required to obtain a Mexican licence, with the Strendus fantasy sports product allowed under Logrand's permit.
It has been a busy few months for Scout, which received a UK B2B licence in November. In the last year it has signed partnerships with operators such as Betsson, ComeOn and Dafabet.
James Camilleri, Scout's head of sales and general manager, told iGamingBusiness.com that the company's first deal in Latin America is the precursor to further expansion in the region.
“Currently we are not operational in other Latin American markets however in 2019 we are looking to grow aggressively in such markets,” he said.
Logrand was established in 2005 and its casinos across Mexico offer 6,000 gaming terminals via locations in Cancun, Guadalajara and Monterrey.
“The alliance that we made with Scout Gaming Group for establishing our fantasy sports offering, strengthens our commitment to provide our clients a quality service and high-level diverse online entertainment platform,” Logrand chief operating officer Lenin Castillo said. “We are sure that will see an expanding number of users and that with this partnership will strengthen our leading position in the industry.”