Casino operator Viral Interactive has today announced that it’s withdrawing its white-label gambling business from several regulated markets.
The firm, a subsidiary of Finnplay Group, announced the decision today, revealing that it was pulling all white-label casinos out of markets such as Sweden and UK with immediate effect. According to Viral, the decision was made due to tightening regulations within the jurisdictions as well as increasing operational costs.
As a result, a number of Viral Interactive’s collaborations have come to end, including its partnership with Global Gaming which was signed in August last year to launch Nano Casino after Global Gaming had its license revoked by Swedish gambling regulator Spelinspektionen.
Speaking about the move, Finnplay Group founder Martin Prantner said in a statement: “We regret the decision to close our white-label operations in these markets, especially after having successfully co-launched many exciting brands over the years.
“However, being realistic, market conditions are not favourable for smaller operators in an ever-tightening regulatory framework resulting in diminishing profitability. In the months to come, we will review our strategic options and restructure our business accordingly.”
Tobias Fagerlund, the CEO of Global Gaming, expressed disappointment over the decision and the end of the firms’ partnership. He said: “Of course, it is sad that Viral Interactive chooses to discontinue their B2B operation on regulated markets.
“It is important for us to emphasise that it has only a minor impact on Global Gaming’s revenue and our assessment is that the decision does not affect our previously communicated goals.”
Casino Operator Closures
As a result of the move, the Finnplay Group joins a number of operators that have recently decided to withdraw from the white-label gambling business within regulated jurisdictions.
Last year, EveryMatrix, the previous operators behind PlayFrank, made their decision to pull out of the UK white-label market after the Gambling Commission suspended its license for remote betting and casino services.
In its announcement, EverMatrix described its UK brand as “irreparably damaged”. Shortly after, the gambling firm announced that it was leaving the Danish white-label market too for similar reasons.
Meanwhile, the UK Gambling Commission has continued to tighten its regulations and rules. Over the last few months, the regulatory body has imposed penalties on various gambling firms for failing to adhere to the Commission’s regulations.
So far this year, the Commission fined Betway a record-high penalty of £11.6 million for multiple failings, and it fined Mr Green Casino £3 million for money laundering failings. Meanwhile, operators Stakers, Addison Global, and Triplebet have all had their gambling licenses suspended.