According to NEXT.io, Playtech is looking into selling its German-facing sports betting provider Happybet.
According to industry insiders, the company has hired Oakvale Capital, based in London, as an advisor.
The company presently manages more than 100 betting shops in Germany and Austria, as well as an online betting platform.
Despite efforts to expand its position in the region, the company has experienced ongoing financial challenges.
In 2021, Playtech-owned Snaitech incorporated Happybet into its operations, strengthening its technology backbone and expanding its offers.
Despite these attempts, Happybet continued to lose money, and Playtech has already declared plans to shut down Happybet’s Austrian operations in the second half of 2024.
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Not part of the Snaitech agreement.
Happybet was not included in Playtech’s recent agreement to sell Snaitech to Flutter Entertainment for £2.3 billion.
Happybet’s ownership will shift from Snaitech to Playtech once the purchase is completed, which is expected in Q2 2025.
Happybet’s performance has declined in recent years, both online and in retail.
The brand’s gross gaming revenue decreased across the board in 2023, with online GGR falling from €2.8 million in 2022 to €2.4 million and retail GGR falling from €21 million to €18.6 million.
Monthly active accounts have likewise decreased dramatically, from 3,944 in 2022 to 2,941 in 2023.
Despite efforts to rationalize retail operations and execute operational reforms in Germany, Happybet’s adjusted EBITDA losses for FY 2023 totaled €9.8 million, discounting a €2 million litigation payment.
The problems persisted into H1 2024, with revenues declining 7% year on year to €9.6 million.
Adjusted EBITDA losses for the first half of 2024 increased to €6.6 million, up from €6.1 million in H1 2023, attributable in part to a €2 million provision for the projected closure of the Austrian operation.
HappyBet was created in 2017, renamed as HPYBET, and then restored to its old name.
In 2023, the corporation managed 13 betting shops directly, while the remaining 94 were franchised.
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