GVC offloads Sportium stake for €70m

GVC Holdings has negotiated a deal to sell its 50% stake in Spanish retail betting giant Sportium to joint venture partner CIRSA for €70m.

As part of the deal, which is subject to regulatory approval, bwin will become the operator’s flagship brand in Spain while GVC will continue to work with Sportium as a B2B supplier.

Sportium contributed £2.5m to GVC’s proforma operating profit in 2018.

GVC CEO Kenny Alexander

GVC CEO Kenny Alexander said: “GVC is one of the leading online gaming operators in Spain with bwin and the disposal of our interest in Sportium enables us to simplify our business in this market.

“We have enjoyed a good working relationship with CIRSA and are pleased to be able to support them through a new B2B partnership,” he added.

GVC’s working relationship with CIRSA was tested last year when CIRSA told Spanish courts that the terms of the Sportium JV had been completely changed by GVC’s £4bn takeover of Ladbrokes Coral.

CIRSA, which in 2018 was acquired by private equity firm Blackstone, said that Ladbrokes could “no longer fulfil its JV role” as GVC was considered a Spanish market competitor through bwin.

GVC yesterday reported an 18% increase in online revenues for H1 2019.