BetAndWin Buys Back Betoto White Label Operation
Published: Saturday, July 02, 2005 Online-Casinos.com
BET AND WIN BUYS BACK BETOTO WHITE LABEL OPERATION
Euro 18.94 million the price of killing 5 year agreement
The Austrian public company gambling group Bet and Win has reversed out of its
5 year business-to-business "white label" agreements on Betoto.com and
The Croupier.com, only 18 months into the deal.
The group is to pay a total purchase price of Euro 18.94 million, the equivalent
to nearly three times the anticipated gross revenue for the year 2005 to buy back
the white label sites, made up of Euro 5 million in cash and 200 000 shares in
three tranches. The white label sites are currently the property of Nomato Investments
Limited which will receive the purchase price under a new agreement of sale.
In business notices on the transactions, Bet and Win says that in the spring of
2003 the group's business model was expanded by the addition of a business-to-business
offering with the working title of "White Label", the purpose being
to generate additional value for the company by operating online gaming platforms
under other brand names.
Under this business model, betandwin was to act solely as a service provider,
whilst the local partner was to assume responsibility for marketing and sales,
and take ownership of the values brand and customer values created.
The first such joint venture was set up and operated in the form of a pilot project
with the website www.betoto.com aimed at the Greek market.
Although the project proved an overwhelming success: together with betoto, betandwin
has since become the market leader in online sports betting on the Greek market,
and for strategic considerations, at the end of last year the company decided
to drop this business-to-business model.
Expanding on its rationale, Bet and Win says that technological leadership in
the field of sports betting has increasingly proved to be a key element in the
company's future success: due to its importance it was decided to enhance this
rather than make it available to third parties.
Bet and Win has also entered into a long-term marketing agreement with built-in
success factors with the current management of betoto.com so as to be able to
continue benefiting from the local expertise of its Greek partners in the future,
thus expanding the regional market position which both companies have already
achieved.
