Internet betting firm GVC Holdings is facing a legal threat from sportsbetting firm 37 Entertainment after a joint venture between the two firms reportedly fell through.
37 Entertainment has submitted a legal petition for a declaratory judgment in the London Court of International Arbitration, claiming that GVC backed out on a deal that was "a mere formality", according to 37 Entertainment. The group is seeking millions of dollars in damages and costs.
37 Entertainment says that they and GVC were set to establish a 50/50 venture where GVC handled the gambling operations side of things, while 37 Entertainment handled the marketing. The Canadian betting firm claims that GVC backed out of the deal, claiming that the group's bid for Bwin may have led to the falling through of the deal.
GVC has published a statement on the matter, which read: "This is a claim without merit. No formal agreement was reached with the company. GVC is continuously exploring new relationships... and not all opportunities reach maturity."