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BetBright Shuts Down All Gambling Operations Following 888 Acquisition
March 8, 2019 Andrej Vidovic
Following this week’s announcement of 888 Holding PLC’s purchase of BetBright, the sports betting operator has officially declared they’ve halted all gambling operations until the change of ownership is fully completed.
UK’s gaming titan and one of the biggest operators on the planet will finalize the £15 million acquisition of assets belonging to Dedsert Limited and Dedsert Ireland Limited (and their s). These two companies used to run t operations under the BetBright moniker.
There is still no word on the exact date of the deal’s finalization.
Period of Funds Withdrawal Will Last a Month
BetBright has published a message on their site saying that it is in the process of shutting down operations and will stop offering gambling services to customers on a permanent basis.
Based in Ireland, which recently announced a ban on gambling ads, the operator’s customers are urged to begin withdrawal of any funds they may have left on their s immediately!
s will be able to access their s for a period of 30 days beginning Tuesday, March 5th. This is the timeframe during which they can cash out their funds or winnings.
Business Under Fire
Even though 888 is presenting this buy as one of its most important strategic moves of this year…
…Regulus analysts have a different take on the matter – and it’s not quite flattering.
Their verdict on this business move is based on the fact that £60 million has been invested in BetBright since 2013 – and that it is being sold for a mere £15 million is a solid sign that its status is in shambles and “a complete business failure rather than strategic realignment.”
“An Illusion of Scale”
The analyst company does point out that the decaying value of the company may be caused, in some part, by rising taxes in UK and Ireland …
…with market slowdown also identified as one of the factors leading to this, particularly in regards to its early-stage growth projections.
Commenting on businesses of BetBright’s caliber in general, Regulus stated that “high investment in marketing can help them create an illusion of scale.” However, such a low selling price signifies a collapse of this approach if there’s no return on marketing expenditures.
“A big question for the industry now is whether increasing maturity will slow down the rate at which ‘disruptive’ entrants perennially upset the economics of heavy monetisation (driving organic consolidation), or whether regulatory-technology change will create a new wave of business disruption (pushing the risk of business failure up the food-chain).”
Source:
“BetBright closes after 888 acquisition”, igamingbusiness.com, March 5, 2019.
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Really makes no sense from 888’s point of view to acquire such a poor-performing company, unless they’re really confident on putting them back on track.