GVC Holdings is doing a little housecleaning, especially at its properties in the U.K. BETDAQ, Coral and Ladbrokes are expected to be reviewed more closely in order to curtail unnecessary expenses, and the restructuring process has already begun. According to an announcement issued by GVC, the gaming operator is parting ways with affiliate marketing company Oddschecker as of today.
The decision was made, in part, over the company’s desire to trim excess expenses, but also because it apparently couldn’t reach an amicable pricing strategy with Oddschecker when it came time to renew the agreement. GVC said in a statement, “We would like to wish Oddschecker the best of luck and thank them for the positive relationship we’ve enjoyed over the years we’ve worked together. Sadly, we couldn’t agree commercial terms to renew the relationship, so as of the 9th July our U.K. Digital Brands will no longer feature on the service.”
GVC is probably also looking at the bigger picture and considering the fallout that’s coming from a shift to how gambling is managed in the U.K. Regulators and lawmakers in the country are cracking down on virtually anything and anyone tied to the industry, and more controls are expected to be put in place. Ultimately, especially on the heels of the coronavirus pandemic, that means reduced revenue for everyone.
Oddschecker still has a lot of support and, while it will feel the sting, should be able to bounce back with relative ease. The entity is an asset belonging to Flutter Entertainment and has a global footprint that includes several high-profile clients. The company’s CEO, Toby Bentall, issued a statement in response to the breakup, explaining, “It’s disappointing to no longer be working with Ladbrokes, Coral and Betdaq. However, Oddschecker needs to maintain a careful balance between serving its users with the best odds and offers whilst ensuring its business relationships are of sufficient commercial viability to allow investment in the market-leading products and technology expected of the U.K.’s number one odds comparison site. Oddschecker sincerely hopes to work with Ladbrokes, Coral and Betdaq again in the future.”
While GVC is cutting back on its U.K. expenses, it’s ready to shift money elsewhere. The company is tied up with MGM Resorts in the U.S. in an iGaming and sports gambling venture, and this endeavor is gaining steam. Given that the U.S. iGaming scene is becoming more robust, and the U.K. scene is becoming more restrictive, it’s no surprise that the jointly-owned Roar Digital brand would become a better target of GVC’s cash. MGM and GVC just announced yesterday that they’re ready to put another $250 million into the project as they look to make Roar Digital a market leader.