Veltyco abandons sportsbook acquisition on Germany licence fears

Lead generation firm Veltyco has nixed its previously announced acquisition of Germany and Austria-facing sportsbook BTTY after completing its “due diligence” on the German market.

Veltyco said this morning it was put off by “recent developments regarding the German licence program that could impact on BTTY going forward”.

Specifically, Veltyco said there were doubts over the future of the BTTY’s licence in Schleswig-Holstein after the state said existing permits won’t be renewed after their expiration dates.

Veltyco CEO Melissa Blau told EGR they could no longer justify the initial €6.5m asking price with BTTY’s license due to expire in October.

The Schleswig-Holstein announcement is one of several regulatory concerns for operators in Germany, after the German Federal Administrative Court attempted to ban 888 from the market back in April.

888 is currently appealing the ruling, while the grey nature of the market looks unlikely to change in the short term.

Veltyco said it would continue to run its existing operations in Germany through Bet90 sportsbook brand and as well as a marketing contract with Betsson.

Germany was the second largest market in Europe in 2017 with a total GGR of €1.39bn, according to Eilers & Krejcik Gaming, although it has been overtaken by Italy in 2018.