Online Gambling Firm GVC Facing Legal Challenge

Published Wednesday, August 19, 2015 - Online-Casinos.com
Online Gambling Firm GVC Facing Legal Challenge

Acquiring the assets of the online gambling firm bwin.party Digital Entertainment has turned into a marathon for those who are trying to purchase the company. There have been several bids put forth in recent weeks for bwin.party by GVC Holdings and online betting rival 888 Holdings. The bidding war continues now but with a new twist that has GVC executives thinking twice about the situation they are saddled with.

Canadian entertainment consultancy firm 37 Entertainment has launched a legal suit against GVC that claims the company had a deal with GVC to launch a 50-50 partnership targeting the Canadian online gambling market. 37 Entertainment maintains it had begun to build websites for the French and English speaking consumers of online gambling products in the Canadian jurisdictions. The multi-million dollar legal suit with consultancy 37 Entertainment has been launched after GVC has been accused of reneging on the deal. GVC had already agreed to a deal with 37 Entertainment to operate jointly two sports betting websites in Canada. The agreement said that GVC would be responsible for the gambling services and products offered through the two sites, and 37 Entertainment would be responsible for the marketing of the services, and any revenue would be divided equally.

37 Entertainment also said GVC had not formally signed the agreement but GVC had presented a number of “written and verbal commitments”.  The Times news in the United Kingdom reported that GVC and 37E had not signed the final contract. However 37 ENT commented that the essential terms had been agreed on and that an overwhelming number of “written and verbal commitments” were documented on the matter. 37ENT said that “excuses were coming fast and furious”, as GVC management moved its focus to the bwin.party Digital Entertainment acquisition and proposal.

GVC issued a counter statement saying, “This is a claim without merit. No formal agreement was reached with the company. GVC is continuously exploring new relationships… and not all opportunities reach maturity.”

 

 

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