GVC Holding, a renowned online gaming brand, announced that it will be changing its name to Entain as part of its new sustainable growth strategy. In addition to this, Entain will be making a swift exit of all grey markets. Entain’s, formerly known as GVC, CEO has taken to online news platforms to share the reasoning behind the rebranding and explains what the company plans to achieve with its new growth strategy.
GVC Holdings data depicts that 96% of its gross revenue comes from markets that are regulated nationally or are currently in the process of regulating. This number is expected to reach 99% shortly. Grey markets refer to countries or states that have not explicitly banned online gambling activities but have not legalized it either. This lack of concise lawmaking has created ambiguity and a theoretical loophole for many operators. In the past, online gambling operators, such as GVC, have made a success of themselves in these grey markets. However, this was also considered to be the industry norm in the early days of online gaming.
As more countries and jurisdictions move towards legalizing online gambling and gaming, compliance and regulation have become two of the most important watchwords for operators who are banking on long-term success, growth, and stability. As such, GVC has been taking the lead in the charge of building a socially responsible online gambling industry.
As it stands, the industry is under constant threat of tighter and more limiting regulatory controls in the UK which has prompted GVC, and companies like it, to get their ducks in a row and stave off unnecessary protocols and rules. GVC’s CEO, Shay Segev, stated that under the company’s new corporate identity, the team will continue to make use of its unique technology and platform to build strong momentum in its existing regulated markets. This will be achieved by enhancing the customer experience and providing player protection. This momentum is likely to result in growth in new markets that will allow GVC to service new audiences and provide a premium and secure online gambling experience for all.
These days, the industry contains markets that are varying shades of grey. However, this was not always the case. A good example of this is the Turkish market, which previously accounted for one-third of GVC’s revenue until it became clear that the market was closer to black than white. As a result of this, GVC offloaded its operators in Turkey in 2017 and did so for free to dodge potential regulatory obstacles to its takeover of Ladbrokes Coral. The deal was valued at $4 billion and the transaction was officially completed in 2018.
The Turkish market was also of great concern to regulators in Nevada. This came to light when the company applied for an operating license in the state through its joint venture with MGM, BetMGM. The company was berated but still received a license, but just barely. As a result of this, the company has decided to avoid close shaves and exit shady dealings.