This initiative will increase efficiency and have a positive impact on the contribution from its UK business. It will also enable resources to be reallocated for profitable growth in other markets. The other eight brands will be retained in the Group's portfolio for use in other markets and therefore there will be no need for write-down of goodwill or trademark.
Betsson's market share in the UK is relatively small with revenues currently representing approximately 3% of the Group's revenue. The UK regulatory framework has undergone significant changes in the past few years, requiring extensive investments both in technology, regulatory compliance as well as marketing, which is not sustainable with the Group's current UK setup.
Three of the Group's four licences will therefore be handed back to the UK Gambling Commission (UKGC) with immediate effect. One of these licences was under review with the UKGC.
The eight UK-facing brands under the returned licences will be closed with effect from this Wednesday (21) with no further deposits or bets accepted. The customers of these brands will be contacted accordingly, all deposits will be repaid, and all outstanding bets will be paid out as winning bets.
Source: GMB