MyBet Set to File for Insolvency

Discussion in 'Gambling News' started by Marina, Aug 17, 2018.

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  1. Marina

    Marina Administrator Staff Member

    Efforts to avoid reaching the point of insolvency for MyBet Holdings failed this week after the gambling company’s board confirmed that investor talks had collapsed. The announcement on Tuesday, which appeared on MyBet’s website, said that the company’s board of directors was preparing an application to begin insolvency proceedings this week, after discussions with a potential strategic investor failed to produce a solution. The application is set to be filed on Friday. According to MyBet, it owes around EUR 4 million in sports betting taxes and now faces “imminent illiquidity”.

    “The background for the application for the opening of insolvency proceedings is the failure of discussions with potential investors,” wrote MyBet Holdings in its statement. “Today, the discussions with a strategic investor reported on July 13 2018 regarding the possible sale of the online business of MyBet Holdings under the domain mybet.com were closed. These talks failed due to conditions set by the investors which could not be fulfilled.”

    The identity of the investor was not revealed to the media, as a non-disclosure agreement had been signed between the two sides.

    Last month, there was much optimism in the air when MyBet’s board signed a term sheet with the potential investor that would essentially switch ownership, stream much needed funds into the company and essentially save it from insolvency. The non-legally binding document was seen as a precursor to a final acquisition contract. MyBet explained at the time that the investor would acquire the full and exclusive online rights to the brand.

    At the time, it was stressed that the deal remained subject to the sealing of a binding contract and the fulfillment of special conditions. Now, it seems that these conditions could not be met by MyBet and the deal fell through and announced on Tuesda.

    MyBet was due to release its 2017 financial statements in April this year, but asked for a postponement of its annual general meeting. The last financial report was seen in November last year, where a dramatic drop in revenue was seen in the first nine months of the year. MyBet showed that revenue had dipped 28.2% to EUR 24.9 million, with sports betting falling 17% year on year, and casino revenue falling a dismal 50%.


    With talks of MyBet’s insolvency, it is quite natural that players with accounts at the company’s sites began to feel jittery. However, a representative for the company shot down any fears by telling iGamingBusiness: “While insolvency procedures are under way, existing customers should not be affected as MyBet operates under the Malta Gaming Authority license requirements which protect customers in numerous ways. The service continues to be available for customers until further notices. So currently there should be no effect.”


    BonusParadise.com cannot recommend playing at Mybet under this circumstances.
    Therefore we have now redirected any Mybet links on our site to another, trusted online casino.
     

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