Bet on Sports Purchases Online Casino Group
In a recent statement online casino firm Bet On Sports announced the purchase for $37 million of a further three online sportsbooks and casinos. The new sites are expected to boost online casino revenues, which are lower than predicted due to low sports betting margins. The three new online casino firms MVP Sportsbook, V-Wager and Player Super Book will continue to operate independently but will be subject to Bet On Sports branding.
The terms of the online casino deal involve Bet On Sports initially paying a total sum of $20.2 million for the three online casino sites; $2.18 million of which is represented in shares and the remaining $15.2 million in cash. A further $16.8 million to be paid in cash will be determined by the performance and profitability of the three online casino businesses up until the end of February 2007. Reports of lower than average revenues have been confirmed by Bet On Sports, citing margins for the NFL had been lower than usual due to a large number of favorites winning their events.
However CEO David Carruthers was quick to point out that gross win margins in all other sporting events along with online casino revenues are higher on previous years. He also predicted that sports betting margins would return to their previous levels in due course which would bring the financial results in line with expectations. Bet on Sports shares have dropped marginally in recent weeks but news of the purchase of the online casino firms is expected to boost the current share price of 127 pence.