Sports betting firm Swifty Global has confirmed its acquisition of Goldchip, a UK-focused betting firm which recently landed in hot water with the UK Gambling Commission (UKGC).
Described by Swifty as a ‘particular compliance problem’, Goldchip’s licence was suspended by the UKGC last month after failure to meet licence conditions, as well as social responsibility and anti-money laundering shortcomings.
Despite this, the New York-based firm states that its acquisition of Goldchip’s assets ‘resolves this problem’, due to it holding its own UKGC betting and gaming licences, enabling its new holdings’ clients to migrate over immediately.
Swifty Global CEO, James Gibbons, commented: “Everyone is delighted about the acquisition and to have the Goldchip clients and team onboard. This is exactly the critical mass we need to put us on the fast track towards our bigger plans.”
Moving forward, Swifty anticipates a strong return from its latest venture, pointing to Goldchip’s status as a popular ‘VP sportsbook’ in the UK. According to the firm, Leeds-based Goldchip’s customers include ‘famous celebrities and sports stars’ such as ‘decorated Premier League footballers’.
The firm is hopeful that it will be able to enlist some of these prominent names as brand ambassadors, whilst on an operational level planning to incorporate its sports predictions app and casino into Goldchip’s wider offering.
Additionally, the fintech also observed that Goldchip reported revenue of £75m million and a net profit of £1.4 million during the 2021/22 financial year in the face of ‘substantial one-off costs’, suggesting a strong business model.
A full roll out of Swifty’s plans, however, is dependent on the firm’s acquisition of a GLI certificate for its Unique Sports Predictions app in order to prove that it meets both UK and international standards.
Swifty Chairman, Nicolas Link, added: “I’m delighted about this deal. The team has been working extremely hard to build this business, and it’s fantastic to be able to put substantial tangible scores on the board with immediate effect, especially since the share price has had a tough time of late.
“With this deal, Swifty bypasses the next three milestones on its roadmap and becomes a serious player in the OTC, where there are not many businesses delivering nearly $100 million in annual revenues.”