GVC disposes of Betaland
Operator disposes of brand in order to avoid costs of closing down the operation.
GVC Holdings has announced that it has it has sold its Betaland brand to a third-party company for “a nominal sum” after deciding that the returns from the operation “no longer justify the risks involved.”
Betaland has been bought by GVC New Limited “ a company not affiliated in any way with the operator, but also registered in Malta. Under the terms of the deal, the holding company will change its name to something totally unrelated to GVC Holdings within two years.
The disposal of the brand will go through once the transfer has been ratified by the Maltese Lotteries and Gaming Authority, and is on a debt- and cash-free basis. The majority of GVC employees working on Betaland will also be transferred to the new parent company.
GVC CEO Kenneth Alexander (pictured) explained that the disposal was a move to avoid costs related to shutting down the Betaland site: “The declining profitability of Betaland led the Board of GVC to conclude it should exit this market. By transferring Betaland to an independent third party, GVC will have sheltered itself and its shareholders from the costs associated with the closure of this business as well as the potential to settle liabilities to customers directly.”
The group will continue to operate its Latin America-facing Betboo and Germany-facing CasinoClub brands alongside its B2B business, as well as the Turkish-facing Superbahis site, acquired from Sportingbet through GVC subsidiary East Pioneer Corporation for a minimum consideration of £125m in October last year.
GVC reported a 15% increase in B2C revenues for 2011 in its results for the three months ending 31 December 2011, with the group’s preliminary results for the year to be announced on 25 April.