Viral pulls white label offering from regulated markets
Finnplay Group subsidiary Viral Interactive has opted to cease offering its white label solutions from regulated markets, including Sweden and the UK.
Martin Prantner, chief executive of the business, told iGaming Business that the deals would be phased out “in accordance with the notice periods” provided in the agreements.
In a press release, Prantner said the decision had been taken as a result of tightening regulations in these territories.
“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,” Prantner explained. “However, being realistic, market conditions are not favorable for smaller operators in an ever-tightening regulatory framework resulting in diminishing profitability,” Prantner said.
“In the months to come, we will review our strategic options and restructure our business accordingly.”
One white label partner, Global Gaming said its white label agreement with Viral has been terminated with immediate effect. Prantner told iGaming Business that the contract between the two parties gave Viral the option to end the deal without notice.
In July 2019, the operator teamed up with Viral to return to the market via the Nano Casino white label brand after Swedish gambling regulator Spelinspektionen revoked its licence in June. However, Spelinspektionen then rejected an application to relaunch its original brand, Ninja Casino, in the market in February 2020, criticising Viral for what it called a “highly inappropriate” collaboration with Global Gaming.
Chief executive Tobias Fagerlund said Viral's decision would not have a major impact on Global Gaming’s revenue.
“Of course, it is sad that Viral Interactive chooses to discontinue their B2B operation on regulated markets,” Fagerlund said. “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.”
Viral becomes the latest white label provider to withdraw from regulated markets over increased licensing pressure. In September 2019, EveryMatrix withdrew from the UK white label market after the GB Gambling Commission suspended its operating licence in August.
EveryMatrix said in a statement at the time that its white label business is “irreparably damaged, despite its best efforts to swiftly prove the ability to operate in a safe, responsible, and compliant manner”.
Following the EveryMatrix licence suspension, the Gambling Commission warned white label solutions providers that they will ultimately be held responsible for any wrongdoing by clients.
“Licensees must know their customers and be able to demonstrate knowledge, oversight and proactive interactions where appropriate,” the Commission said. “Any interventions must be completed in a timely manner.”