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32Red Potentially Selling Sports Betting Site

September 22, 2007

The 32Red online casino is a well-known site for many regular online gamblers. The site has attracted many players over the past few years and is now an established brand when it comes to online casino games. But the 32 Red company has invested in more than just online casino games and a website. Like so many other online gaming companies 32 Red decided to move into the field of sports betting too. More and more online casino investors decide to expand their online gaming business into betting at some point. The two types of gambling often operate according to the same regulations so expanding into this field is not complicated.

BetDirect.com was owned by Sportech when 32Red acquired the successful betting site only 18 months ago. The betting site was a healthy business attracting plenty of players every single day. The sale was closed at $25 million and even though this may seem a large sum of money there were over 45,000 active players on the betting site that made the purchase worthwhile. By attracting at least 11,000 new players the revenues earned by the online sports betting site grew over $7 million in the last year alone.

The London Stock Exchange has now confirmed that 32Red is in talks with other companies about selling its BetDirect division. There are persistent rumours that one of the interested parties is the Irish betting company Boyle Sports. The Stock Exchange mentioned that there is a chance of a potential sale but cannot disclose any specific details of course.

Before 32Red acquired the sports betting site it was clear that the site had been managed under bad trading conditions meaning that there were initial problems from the start up of the site. There were losses reported of over $9 million by the end of December even though the sit attracted a very healthy number of players. At the same time there was a turnover of at least $285 million and the company’s trading conditions have improved since 32Red took over management.

The expected turnover makes this sale one of the most successful ones of the year. Should Boyle sports decide to go for it this company will be able to acquire a healthy sport betting website with a well-established number of returning players. This fact in itself is worth a small fortune on goodwill alone.