Chandler betting firm priming to be purchased?
(source: July 31, 2006)
Chandler betting firm priming to be purchased?
British-based betting firm the Victor Chandler Group has been identified as a prime target for potential buyers, with the company even going so far as to recently-hire corporate-finance firm Zeus Capital in an advisory capacity. Zeus will lend its expertise to Chandler in dealing with the expected unsolicited bids and dispense advise on how best to proceed.
Analysts peg the worth of the Victor Chandler Group at approximately £300-400m, with the Group’s complete non-association with the United States acting as an attractive lure to prospective purchasers – especially in light of the recent BetonSports scandal.
Chandler does have a significant following in Europe and the Far East, however, and is forecast to generate £1.4 billion in sales this year, with a gross win (turnover minus winnings) of £43.4m. It is expected that rival companies such as PartyGaming and 888 would be among the most-interested in taking over the company. As one analyst noted in this past weekend’s Sunday Times, “Party Gaming is mostly poker-based, which is definitely legal. But over 75% of the trades come from the US. It still looks a bit overexposed. Clearly Victor Chandler is desirable since it would balance this.”
Elsewhere in the story, Victor Chandler himself confirmed his group has been approached by “three private-equity firms” with two being British, and the other from the Far East. While refusing to elaborate on details, Chandler did admit “everything has a price” but noted his reluctance to sell would hinge on the fact that it would end a long-standing family tradition. “I’m a fourth-generation bookie,” he said. “This year is the 60th anniversary of the business.”
Of note, Chandler also took a few shots at the recently-incarcerated (and now deposed) BetonSports CEO David Carruthers. “Betting over the telephone in the US is illegal. Everyone knows it, there’s never been any doubt. Carruthers did advertising campaigns on US TV and had a marketing office with staff there. He was rubbing their noses in it. I thought it was mad.”
“We’ve done all the research in terms of technology and marketing,” he added. “Every gaming company wants to go there: it has a huge population that loves betting, is tech-savvy and has the disposable income. But we’ve stopped plans for the moment. America is a frightening place. I guess you’d say we’ve had a lucky escape.”
After initially building its reputation for servicing high-rollers, Chandler has since utilized the internet to its advantage to broaden its client base. All told, nearly 80 percent of bets placed with the Group now employ the internet. In addition to sports books, the company also operates online casinos and poker sites.
Date Posted: 31-Jul-2006
