GVC Moves On Regulated Georgian Online Gambling Market

Published Monday, March 05, 2018 - Online-Casinos.com
GVC Moves On Regulated Georgian Online Gambling Market

The firms in the online gambling industry are moving towards regulated markets mainly for the stability and long term earning potential. The recent news that GVC Holdings has acquired a majority stake in the internet betting company Crystalbet, a leading operator in the Republic of Georgia is proof that the regulated market is the most secure.

The purchase of Crystalbet, is part of GVC Holdings strategy to move towards regulated gambling markets.  GVC is in the process of taking over U.K. bookmaker Ladbrokes Coral which has yet to be completed. GVC will acquire fifty one percent of the Crystalbet from owner Mars LLC for €41m in cash with an agreement in place to buy the other 49 percent by 2021 for a maximum payment of €150m.  

Crystalbet which was created in 2011 is licensed to offer sports betting, casino games, and poker in the Republic of Georgia which is regulated by the government. Online gambling in Georgia is totally legal currently, but back in 2010 it was mostly available at interactive clubs. Georgian punters play at online casinos in these internet venues. Just last September in 2017 the government was considering a prohibition on online betting an idea which has since been scrapped.

A GVC spokesperson recently said that the Georgian operator had “achieved significant growth, driven by its entrepreneurial management team and a highly successful marketing strategy.” Crystalbet's management which includes Chief Executive Officer Koba Giglemiani will stay with the firm and retain their equity stakes during the initial acquisition of the majority stake.

GVC’s growth was being fueled by a strategy of targeting “grey markets” which were untaxed or unregulated but that approach has changed with the firm moving into regulated markets or those where it perceives there was a “realistic path to regulation. ”

GVC chief executive Kenneth Alexander said, "We are delighted to welcome Crystalbet to the GVC Group, having been impressed with what the management team has achieved thus far. "

 

 

 

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