BetBright Shuts Down Following 888 Acquisition
After being acquired by British market leader 888 Holdings, BetBright, an Irish sports betting provider, shut down its gambling operations. Some economic experts believe the brand's downfall might be partly due to impending tax hikes in the UK and Ireland.
Low sales price for high investments
The announcement of the company's closure was published on its website yesterday, mere minutes after 888 announced they had bought the online bookmaker. Now, BetBright's customers can only access their accounts for 30 days more, with a recommendation to withdraw any leftover money and winnings as soon as possible.
BetBright belonged to Dublin-based gambling companies Dedsert Limited and Dedsert Ireland Limited originally. The takeover by 888 Holdings was officially announced just a few days ago, yet it's unclear if it has even been finalized yet. Known UK-listed gaming operator 888 has only paid £15 million ($17.5 million) for the acquisition, while approximately £60 million has been invested into BetBright's online operations since 2013.
888 aims to "gradually launch the entire BetBright platform," encompassing online casino, poker, and bingo, in addition to sports betting. They also planned to integrate BetBright's technology and product development into their own portfolio, according to 888 CEO Itai Pazner. Pazner shared:
"The acquisition of this high-quality and scalable sports betting business is an exciting milestone for 888. It fills a gap in our product and technology portfolio. We are confident this acquisition will bolster our long-term prospects and make us stand out more in the global sports betting market."
Within the past few months, 888 has signed several other deals. These include acquiring JPJ Group's Mandalay business for £18 million and sealing a deal to obtain the remaining 53% of the All American Poker Network, extending their joint venture relationship with Avenue OLG Entertainment since 2013. Pazner pronounced, "This acquisition is our third in recent months to further an organic growth strategy in regulated markets."
Forces leading to BetBright's closure
Doom was forecasted by industry analysts at Regulus Partners following BetBright's unexpected closure. They pointed out that a significant £60 million was invested in BetBright since 2013, yet the company was sold for £15 million. This could be either a sign of a full business collapse or a strategic restructuring.
Regulus further mentioned that vast investments in marketing can create the illusion of growth potential. However, the meager selling price of the platform indicates this plan failed as costs and expenses were not beneficial.
It's speculated that the BetBright brand decline, at least in part, is due to the planned tax increases in the UK and Ireland and a subsequent market slowdown, which could negatively affect future financial forecasts.
Potential tax hikes looming
A tax hike on online gambling from 15% to 20% is currently being discussed in the UK since May last year. This proposed transformation may be the logical outcome of the blossoming online market. Some proponents claim an increase in the Remote Gambling Duty (RGD) could raise an estimated £200 million for the budget.
Conversely, Ireland's government is contemplating a 2% hike on gambling tax for online service providers. This decision, as expressed by the Irish Minister for Digital, Culture, Media and Sport, Matt Hancock, involves a desire to create "a fairer society for all."
The Irish Bookmakers Association (IBA) voiced concerns, stating this increase could threaten up to 2,500 betting shops and potentially shortchange the Irish government by €35 million. They alleged that the intended rise was made "without considering any potential negative effects."
It's unclear whether or to what extent the decline of the BetBright brand is linked to this tax fiasco or whether 888 is pursuing a different agenda in rebranding BetBright.
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Source: www.onlinecasinosdeutschland.com
