Gaming VC Sells Betaland Brand

Gaming VC today announced it was selling its Betaland brand on a cash and debt free basis for a nil consideration – effectively giving it away in exchange for the buyer taking on the company debts including redundancy costs.

Betaland operates online poker rooms on the Boss and Cake networks.

Betaland’s focus was on southern European markets and analyst Daniel Stewart & Co., explained the move saying, “Betaland is a low margin producing business within the GVC Group, as a result of the competitive pressure and the dependency on agency relationships, so we regard the strategy as sound and as a result leave GVC to focus on higher margin producing B2C business’s CasinoClub and Betboo, and its B2B Turkish business.

In the six months to June 2011 Betaland’s net revenue was €10.5 million, just over one-third of Gaming VC group’s which stood at €30.3 million.

GVC Holdings cheic executive officer Kenneth Alexander, said, "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.

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