GVC Holdings has announced to assume a new corporate identity, Entain, and announcing a withdrawal from all unregulated markets. The move could cost the Isle of Man-based company £40 million ($52.7 million) in earnings in the short-term. The rebranding will take place once it is approved by shareholders.
On Thursday, the online gaming giant said the company was committed to diverting to 100% regulated markets by 2020, as GVC’s new CEO, Shay Segev, seeks to transform and expand the business. The new logo is merely the new name, with the Greek letter sigma replacing the capital “E”, with an official tagline “For the good of entertainment”.
“Today marks an exciting new chapter for the Group and a crucial step forward in achieving our ambition of being the global leader in sports betting and gaming,” said Segev on Thursday. “Under the new corporate identity, we will continue to use our one-of-its-kind technology platform to grow in both existing and new markets.” He said the company will now be able to reach new audiences while enhancing customer experience, besides ensuring industry-leading levels of player protection.
Segev said GVC, now Entain, is committed to pursuing the optimal standards of corporate governance, to providing brilliant career development opportunities for the colleagues, besides supporting the communities in which the company operates.
Why GVC Embraces Regulation Now?
Well, there are several factors, both internal and external. The biggest factor is that many countries are regulating their gambling market. Particularly, the United States has grown into a flourishing market since the US Supreme Court struck down PASPA in 2018. Without entering the regulated market and legally entering the United States, GVC would lose a large portion of its yearly revenue.
The unregulated gambling market in North America and Asia makes a significant portion of the global internet gaming market. Around 4% of GVC’s revenue currently generates from these regions, and the company has announced by the end of 2020, the number would be reduced to 1%.
In addition to the reasons described earlier, GVC claims its redirected focus on responsible gaming is not just an ethical concern but business sustainability issues. Inevitably, a better reputation in the market will attract more business.
GVC’s previous CEO, Kenny Alexander, who made the group into one of the world’s largest gambling entities during the last 13 years under his leadership, resigned in July. The new CEO Segev seems to have even a greater vision and as he has realized the online gambling market’s potential amid the pandemic.
GVC Owns Many Top Brands
Founded in 2004 in Luxembourg, GVC Holdings gained fame after it partnered with William Hills to acquire Sportingbet in 2012. The British bookmaker took Sportingbet’s Spanish and Australian businesses, while GVC acquired the rest.
But the acquisition that drew the biggest attention across the gambling world was the company’s purchase of Bwin Party Digital Entertainment for $1.44 billion in 2014. Then in 2017, GVC purchased UK mainstay, Ladbrokes Coral, following a whopping deal of $5.24 billion. Overall, GVC Holdings owns over 30 gaming brands.