GVC Holdings is reportedly involved in a multi-million dollar legal battle with Canadian sports and entertainment consultancy 37 Entertainment after being accused of reneging on a deal as a result of its bid to acquire bwin.party.
As reported by iGaming Business, GVC has put forward a number of offers to acquire online operator bwin.party, with the most recent bid of approximately £1 billion (€1.4 billion/$1.6 billion) having been lodged earlier this month.
However, according to various reports, GVC had already agreed a deal with 37 Entertainment to operate jointly two sports betting websites targeted at Quebec and English-speaking regions across Canada.
The agreement stated that GVC would be responsible for the gambling services and products offered through the two sites, while 37 Entertainment would take charge of related market services, with revenue split equally.
The Canadian firm said that although GVC had not formally signed the deal, it had presented a number of “written and verbal commitments” to the agreement.
37 Entertainment has accused in a filing to the London Court of International Arbitration that the signing of the deal was just a formality.
The company also accused GVC of delaying the signing of the deal since February of this year.
37 Entertainment said in a statement this week GVC could face customers and shareholder lawsuits, as well as licensing and regulatory investigations.
A GVC spokesperson said that the claim has no merit as no formal agreement had been signed, while also noting that the company is always on the lookout for new relationships but not all opportunities it has been presented with have reached maturity.
