Sportsbet and CrownBet go head-to-head in their quest for exclusive sponsorship.
Sportsbet, an Australian online bookmaker, has successfully obtained an injunction to prevent its main competitor CrownBet from changing its name to SportingBet. This comes amid a fierce competition between the two companies for the Australian market share.
The Federal Court of Australia (FCOA) upheld an emergency appeal by Sportsbet, declaring that "Sportingbet" sounded too similar to "Sportsbet" and could confuse and mislead customers. Sportsbet's spokesperson expressed relief, stating that "the decision shows that the Federal Court shares our concern that consumers are misled to believe that services offered under a brand like Sportingbet are associated with our sports betting offers."
Sportsbet has vowed to continue "taking all necessary measures to protect its brand and prevent deception in the market." This follows the announcement by CrownBet of a review. CrownBet, operated Down Under by Melbourne-based casino-hotel giant Crown Resorts, is "very disappointed" and will closely examine the FCOA's decision.
The name game
CrownBet's CEO, Matthew Tripp, had reserved the name "Sportingbet Pty. Ltd." for the company in June 2018, a gesture to honor his late father Alan Tripp, who had been the owner of Australian sports betting provider Sportingbet until it was taken over by British betting operator William Hill in 2014. However, Justice Mark Moshinsky's ruling does not seem to have been affected by the family connection, instead viewing the rebranding as an unavoidable part of the acquisition by The Stars Group (TSG) last February.
Last February, Crown Resorts transferred 62% of CrownBet's shares to TSG for €95 million. TSG then increased its stake to 80% in April, raising the possibility that CrownBet would lose the rights to the 'Crown' brand and have to rebrand as a result. With the acquisition expected to be completed in early 2019, the FCOA's ruling could potentially force CrownBet to change its name.
In the throes of rivalry
The ongoing legal battle between Sportsbet and CrownBet can be traced back to their rivalry for William Hill's Australian assets. After a lengthy battle, in March 2018, CrownBet emerged victorious and took over William Hill's Australian business for €190 million. This acquisition reportedly doubled CrownBet's market share and distanced it from the traditional London bookmaker's dominance in Australian states like Queensland and New South Wales. CrownBet CEO Matthew Tripp expressed satisfaction, stating, "We made no secret of our plans to grow through the acquisition and we're delighted to have won here against tough competition."
TSG CEO Rafi Ashkenazi, meanwhile, has announced his intention to maintain his organic growth strategy in 2018, with a goal of becoming the Australian market leader in sports betting. This ambition was earlier reflected in TSG's acquisition of the British sports betting brand SkyBet for €3.8 billion in April.
CrownBet's temporary defeat in the name war against Sportsbet sparks questions about whether Tripp will show grace in defeat or appeal the decision, or if TSG will simply buy SportsBet.
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Source: www.onlinecasinosdeutschland.com
