32Red Derby County Sponsorship Deal Criticised By GVC

Viktor Vangelov | Published 16 Aug 2019, 10:58 a.m.

In light of recent events regarding problem gambling and the increased amount of pressure on operators to contribute more to dealing with this issue, all eyes are on the industry and the UK gambling operators, particularly the largest ones. That’s why many feel that the 32Red Derby County sponsorship deal is rather problematic and doesn’t do any good to the industry as a whole. GVC Holdings, or to be more precise, their CEO was the first to criticise 32Red. We’ll discuss the details of the deal that involves former Man Utd legend Wayne Rooney.

Since we already mentioned GVC and their reaction regarding the 32Red Derby County sponsorship deal, we should tell you that one of the largest gambling brand owners reported steady growth for the first half of 2019. People at GVC are excited with the results and expect the company’s revenue to keep rising.

GVC CEO Calls The Deal ‘Complete Own Goal’

The UK Gambling Commission has fined quite a few operators in the past year, in fact the total amount of fines that operators had to pay was quite substantial. Namely, UK gambling operators paid £19.6 million in fines. Operators were also criticised for failing to meet the voluntary donations threshold. Some betting and gambling operators have only donated as little as £5 or £10 to responsible gambling, mainly just so they can get their name on the list.

GVC and other larger operators have pledged the increase the voluntary donations requirement from 0.1% to a full percent which would see the Commission gathering a much larger amount of money that can be used to promote responsible gambling and tackle problem gambling. At the beginning of this month we announced the plan of top UK operators to launch a new committee that will publish its recommendations at the end of the year.

Then we had the Paddy Power Huddersfield Town sponsorship deal that turned out to be just a clever marketing ploy. GVC Holdings, and particularly their CEO Kenny Alexander, have been urging operators to stop advertising on football shirts. Alexander feels that operators should be particularly careful and cautious in order not to draw the public’s anger with careless marketing moves.

According to the 32Red Derby County sponsorship deal, not only will the brand logo find its way on the Derby County shirt, but Wayne Rooney will also be supposed to wear a number 32 shirt. Alexander branded this deal a “complete own goal”, adding that it undermines all efforts made by other operators, most notably GVC Holdings.

GVC Holdings Revenue Increased By 61%

The net gaming revenue of GVC Holdings for the first half of 2019 amounted to £1.8 billion and that’s a 61% increase year on year, which is more than significant. The gross profit amounted to over £1 billion, or to be more precise £1.1 billion, which is an increase of 55%. Alexander used the occasion to state that the company’s online operating model is very effective and that the company is focusing on the sustainable advantages that it has over most of its competition.

The cut of the betting limit on FOBTs didn’t have a very significant impact on the UK retail net gaming revenue, namely GVC’s NGR dropped by just 10%.