Exclusive: Sportingbet to apply for French licence
Sportingbet will apply for a licence in France when legislation allows it, EGRmagazine.com can reveal exclusively.
SPORTINGBET WILL apply for a licence in France when legislation allows it, EGRmagazine.com can reveal exclusively.
Speaking to eGaming Review today, however, finance director Jim Wilkinson discounted the possibility of a French subsidiary encountering a fate similar to Sportingbet Italia, which the company shut down this year because it was unprofitable after failing to achieve the synergies it had hoped for.
Wilkinson (pictured) said: “The French scenario and the specifics of the situation are different. We could have rectified the Italian situation but it would have been a case of building on broken biscuits. We decided to pull out and will go back in with a proper investment case. But we have looked at what’s being proposed in France and feel we can cope with it. We will apply for a licence when they are available.”
As reported on EGRmagazine.com, France’s National Assembly is debating draft online gambling regulation this week ahead of its introduction next year.
The company is also in continued talks with the US Department of Justice regarding a settlement for the company for its activities in the US prior to the passing of America’s Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, but could not provide a timeline as to when a settlement might be reached or what any such agreement would entail in terms of financial costs to the firm.
“It’s out of our control and down to them – it’s a big picture that we are a part of,” Wilkinson said.
Much of the rebuilding that was needed since the US market exit in 2006 had been done, Wilkinson continued, adding that while there was still a lot of organic growth left in the market, the next development stage would be making acquisitions, with Australia a a possible market in which to carry those out.
Regarding Sportingbet’s forthcoming move to the London Stock Exchange main market announced today, Wilkinson said: “The move to the main list to go with the 1p per share dividend we are paying to shareholders is a sign of the maturity we have achieved since 2006. We already have the corporate governance in place and will continue to report on a quarterly basis. It will enable us to attract more investors and underpin the share price.”