Online Casino Firm Acquires Chinese Sports books
Online casino and sports betting operator Bet on Sports has moved its Asian expansion up a gear this week after announcing that it has purchased two Chinese sports books. The acquisition of 777Ball and Hooball double Bet on Sports’ market presence in the Asian online casino market and will be integrated into the firm’s current online casino software platform. The business of both sports books currently focuses on basketball and football, but will now follow the firm’s Malaysian-based structure.
The acquisition is expected to help stimulate the online casino and sports betting firm’s product diversification across the Asian region. An initial purchase price of US$22 million for both sports books was agreed on, along with the issue of over three million ordinary shares. The maximum total purchase price for the two firms is an estimated US$38 million. The online casino and sports betting firm’s performance continues to go from strength to strength. During the 15 months leading up to 31 March 2006, over 28,200 new memberships were recorded – 40 percent being real money sign ups with active deposits. Existing online casino members between January 2005 and March 2006 remained stable at 6,500 a month.
David Carruthers, the online casino and sports betting firm’s chief executive, commented that he views China as a “must-be-in market. He also stated that diversification of revenue streams away from the U.S. is one of the firm’s immediate priorities. The online casino firm’s decision to purchase the Chinese sites achieved both goals and is also viewed as timely given that wagering on soccer at the sites is sure to benefit from the upcoming World Cup.