In the spring of 2003 the betandwin business model was expanded by the addition of a business-to-business offering with the working title of „White Label“, the purpose being to generate additional value added for the company by operating online gaming platforms under other brand names. Under this business model, betandwin was to act solely as a service provider, whilst the local partner was to assume responsibility for marketing and sales, and take ownership of the values created (brand and customers).
The first such joint venture was set up and operated in the form of a pilot project with the website www.betoto.com aimed at the Greek market. The project proved an overwhelming success: together with betoto, betandwin has since become market leader in online sports betting on the Greek market.
However, as described in the 2004 Annual Report, for strategic considerations, at the end of last year the company decided to drop this business-to-business model for the time being. Technological leadership in the field of sports betting has increasingly proved to be a key element in the company’s future success: due to its importance it was decided to enhance it rather than make available to third parties. The only exceptions to this business policy in the future will continue to be select European media houses with extensive sports rights.
Against this background, the five-year service contract originally concluded with white-label partner NOMATO Investments Ltd. („NOMATO“) was terminated after only 18 months in order to be able to look for new alternatives for co-operation on a different contractual basis in the future.
Subject to approval by the Supervisory Board, in return for all rights to the domains www.betoto.com and www.thecroupier.com (betoto’s online asino
platform) as well as all customers registered there, NOMATO will receive a cash purchase price of EUR 5 million plus 200,000 shares, which will be transferred from the company’s own shares in three tranches. A total purchase price of EUR 18.94 million is equivalent to nearly three times the anticipated gross revenue for the year 2005.
bet*and*win has also entered into a long-term marketing agreement with built-in success factors with the current management of betoto so as to be able to continue benefiting from the local expertise of its Greek partners in the future, thus expanding the regional market position which both companies have already achieved.
Both partners have resolved not to disclose further details of their agreement.
Karin Klein, Corporate Communications
BETandWIN.com Interactive Entertainment AG
A-1010 Wien, Babenbergerstraße 9/17
Tel.: +43-1-585 60 44-260