SBC News Voice of the Sports Betting Industry
Webis Holdings has announced the closure of betinternet.com, following a review of operations by the company board.
The Webis brand had been impacted by higher tax charges and jurisdictions blocks which had affected its revenues. The webis board said discussion with several interested parties had not lead to any firm offers for the operation which will close for business on March 5, 2015.
Webis posted a pretax loss of $299,000, versus a pre-tax profit of $ 461,000 a year before, as a rise in revenue to $142.5 million from $ 124.4 million was offset by higher cost of sales, betting duties paid, and operating costs. In the previous year, the company also recorded an exceptional $ 230,000 gain from the strength of sterling during that period.
Webis attributed the swing to a loss to a higher cost base in its US operations, mostly as a result of higher levels of duty, licensing and compliance costs that come with operating in a fully licensed and legitimate manner, tightened gross margins, and some volatility in its high-roller activity.
The company’s WatchandWager business grew revenue by 1.2%, as a rise in high-roller wagering into international jurisdictions was boosted by a two-year contract with the Hong Kong Jockey Club. However, wagering activity through its website and mobile product saw lower growth than it had hoped, so it has scaled back part of its marketing activity.
