egaming review magazine
Austrian sportsbook operator BetandWin has acquired sole control of Greek language sports-betting website www.betoto.com for a total of US$22.9m.
The site was initially set up as a joint venture between BetandWin and Nomato Investments on a white-label basis.
But following huge growth in the Greek market and a change in corporate strategy the firm elected to take full ownership of the site.
BetandWin said had taken the decision earlier in the year to drop all white-label partnerships, with the exception of deals with media houses with extensive sports rights.
NOMATO will receive a cash purchase price of US$6m plus 200,000 shares, in return for all rights to the domains www.betoto.com and www.thecroupier.com and all customers registered there.
The total purchase price is equivalent to nearly three times the anticipated gross revenue for the year 2005.
BetandWin has seen impressive growth in the Greek market, and has committed to a strong marketing spend in the region.
However, there could be difficulty in pursuing this plan as the state lottery operator OPAP has begun to fight back against the growing online sportsbook industry.
OPAP has begun to take steps to limit advertising by internet sportsbooks in the region and recently won a temporary injunction to stop firms advertising in local papers.
