FansUnite Entertainment has sold McBookie, its sportsbook and online casino platform targeting Scotland, for over CA$5m (€3.3m) to an undisclosed third party
The sale price is more than double the amount FansUnite paid for McBookie in March 2020, which was CA$2.2m. McBookie has seen impressive revenue growth for three consecutive years, with turnover and gross win increasing by 305% and 451%, respectively, according to FansUnite.
However, FansUnite has decided to exit the UK market due to tightening regulations, with the intention of streamlining and focusing on higher growth areas of the business such as the US market and affiliate opportunities.
FansUnite cited the tightening UK regulations as a reason for exiting the market, even though McBookie’s remote gambling software license and remote betting license from the Gambling Commission allowed it to function as a B2C online gaming operator and B2B technology provider in the UK.
FansUnite stated that McBookie’s founders, Damian Walker and Paul Petrie, will continue as directors of the brand following the acquisition. Scott Burton, FansUnite’s CEO, views the deal as favorable for both McBookie and FansUnite, as the latter streamlines and focuses on high-growth business areas while strengthening the balance sheet.
The sale of McBookie will allow FansUnite to focus on the segments of their business that offer the highest growth potential with good margins, specifically the US marketplace and affiliate opportunities. This will strengthen their balance sheet and move the company towards being cash flow positive. FansUnite expressed their gratitude to McBookie’s founders, Paul and Damian, and wished them success as they continue to grow the McBookie brand.
McBookie, based in Dundee and launched in 2009, provides sports, virtual sports, and casino betting throughout the UK with a specific focus on the Scottish market. The company has been a supporter of grassroots football in Scotland and has sponsored Scottish Junior Leagues.
In March, FansUnite raised CA$2m in funding through a non-brokered private placement, with Tekkorp, an investment business focusing on digital gaming, agreeing to acquire more than half of the available units.