GVC Holdings has announced that it will return to Portugal for an undisclosed sum by purchasing the Bet.pt online sportsbook.
After a rapid turnaround in all core regulated markets, the FTSE100 betting group revealed its new acquisition, releasing its Q3 2020 trading update, which saw GVC boost its full-year EBITDA guidance to a range of £770-790 million.
GVC described in its trading statement that its acquisition of Bet.pt remained ‘consistent with its controlled business strategy’ as the operator seeks to build a leading position in a market that is expected to more than double to around EUR 450 million by 2023.
Via its Bwin sportsbook brand, GVC had previously maintained a Portuguese market presence, but decided to withdraw from the market in 2015 following the approval of Portugal’s amended Gambling Bill, which immediately increased sportsbook turnover taxes from 8 to 6 percent.
GVC left the market alongside a number of foreign players, including William Hill, bet365 and Ladbrokes, citing that Portugal ‘s new gambling tax system had made its marketplace no longer viable.
Bet.pt, a domestic incumbent, was the second online sportsbook to be awarded a new Portuguese sportsbook licence by the Comissao de Jogos do Turismo (SRJI) regulatory agency in 2016.
The Portuguese sportsbook marketplace has seen a variety of foreign operators relaunch their services, including Betclic, Betano, Betway and 888Sports, four years after its legislative reform.
“We are pleased to welcome Bet.pt to the GVC Group having been impressed by the quality of the business and its significant growth since launch. This acquisition is in line with our strategy to grow in new, regulated markets and builds on our strong track record of buying local brands and building them into market leaders,” GVC detailed in a statement to SBC.
“Through access to GVC’s content, technology and digital marketing skills, we believe Bet.pt can build on it’s position as a market leader in Portugal.”