The decision to withdraw from its white label business and marketing alliances in controlled markets, including Sweden and the UK, was announced by Viral Interactive, putting an end to a range of collaborations.
The group, which is part of Finnplay Group, a Nordic-based igaming platform provider, cited the decision as a response to worsening market conditions and increasing operational costs.
With the move, the Finnplay Group is joining a rising list of Igaming Software Platform providers opting to leave the conventional white label industry across a variety of global markets.
Finnplay Group ceo Martin Prantner commented on the decision to withdraw: “We regret the decision to close our white label operations in these markets, especially after having successfully co-launched many exciting brands over the years.
“However, being realistic, market conditions are not favourable for smaller operators in an ever-tightening regulatory framework resulting in diminishing profitability. In the months to come, we will review our strategic options and restructure our business accordingly.”
Among the relationships brought to a close as a result of the move is the relationship with Global Gaming, which recently saw the latter struggle as part of the ongoing attempt to revive the brand in Sweden with a bid to pass the Ninjacasino.se domain to the company.
Global Gaming initially collaborated with Viral Interactive, the holder of a Swedish online commercial gaming licence in August 2019, to launch the online gaming company Nano Casino, after regulator Spelinspektionen revoked their own licence earlier this year.
Tobias Fagerlund, global gaming chief executive added: “Of course, it is sad that Viral Interactive chooses to discontinue their B2B operation on regulated markets. It is important for us to emphasise that it has only a minor impact on Global Gaming’s revenue and our assessment is that the decision does not affect our previously communicated goals.”