All brands that are property of GVC Holdings, including Ladbrokes, Coral and Betdaq, are set to be subject to closer review from the group that has been willing to minimise all unnecessary expenses. Such a review, which can turn into a major restructuring process, seems to have already begun, as GVC Holdings revealed that it stopped working in collaboration with the affiliate marketing company Oddschecker as of July 9th.
The two companies are parting ways, with the gambling group confirming that its affiliate deal with Oddschecker will not be renewed. GVC Holdings has not provided much detail on the decision but stated that the move has been taken for what it called “commercial reasons”. Also, in the statement released, the gambling operator shared that it was unable to agree on commercial terms with the affiliate company so that the relationship between them was renewed.
As mentioned above, GVC Holdings made the decision partly in an attempt to cut excess expenses, but it was also unable to reach satisfactory pricing strategy with Oddschecker at the time when the two companies had to review their agreement. According to a statement issued by the British gambling group, GVC wished Oddschecker all the best of luck and shared it was thankful to the affiliate for the positive relationships the two companies had over the years they had worked in collaboration.
Stricter Regulation of UK Gambling Sector Forces GVC Holdings to Optimise Expenses
Apart from the fact that its digital brands in the UK will be unable to feature on the Oddschecker service, GVC Holdings has also probably taken into consideration the bigger picture, and more specifically the changes that originate from a shift of how gambling is managed on the territory of its domestic market.
Lately, British lawmakers and local regulatory bodies have been increasing the pressure on anyone and anything associated with the gambling industry, and even stricter controls are expected to be implemented for the sector. Taking into consideration the ongoing coronavirus pandemic, such restrictions would mean reduced gambling revenue for both operators and everyone who depends on it.
Oddschecker, on the other hand, is among the assets of the gambling giant Flutter Entertainment and enjoys an international footprint that currently includes a number of high-profile customers. Having the strong support in mind, it would probably take a while before the affiliate gambling company feels the negative impact of the situation.
Toby Bentall, the Chief Executive Officer of the company, issued a statement to respond to the announcement of the breakup with GVC Holdings, saying that even though it was disappointing that Oddschecker would no longer collaborate with well-established brands such as Ladbrokes, Coral and Betdaq, the company had to keep a balance and make sure its business agreements are viable enough to allow investment in some market-leading technology and products in the UK.