London AIM listed gambling group GVC Holdings is reportedly facing a multi-million dollar legal claim by Canadian entertainment consultancy 37 Entertainment which has accused it of reneging on a deal as a result of its involvement in the £1bn takeover bid for bwin.party Entertainment.
37 Entertainment (37E) claims that GVC had agreed terms to launch a 50-50 partnership targeting the Canadian online gambling market. 37E claims that it was in the process of launching two new websites targeting Quebec and English speaking Canada regions.
The plaintiff has further accused GVC of not fulfilling its partnership terms which would see the gambling group operate the Canadian brands’ gambling services and operations, whilst 37E would focus on marketing initiatives targeting Canada.
UK newspaper The Times, has reported that GVC and 37E had not signed the final contract. However the Canadian company has stated that all essential terms had been agreed on by both parties and that an overwhelming number of written and verbal commitments” had taken place on the matter.
The company reports that GVC had failed to progress on offering any partnership, having verbally confirmed that the deal had been finalised. 37E states that new excuses were coming fast and furious”, as GVC management moved its focus on to fufiling its bwin.party Entertainment acquisition
GVC have countered the claims made issuing the following statement
“This is a claim without merit. No formal agreement was reached with the company. GVC is continuously exploring new relationships… and not all opportunities reach maturity.”