GVC May Return Partypoker to Full Network Model

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Tuesday, June 14th, 2016 | Written by Stephen Smith

GVC purchased bwin.party less than three months ago, and the company has already entered into a sizable 10-year deal with Betfred that will result in the UK-based operator moving all of its gaming and sportsbook capabilities over to GVC’s platform. The move will mean abandoning Betfred’s current platform, the iPoker technology provided by Playtech, and it’s likely that Betfred will begin using the same platform as PartyPoker in the near future. While the deal will have an impact on Betfred and its users, the agreement signals that big things may be on the horizon for GVC and PartyPoker.

The History of PartyPoker

Currently, PartyPoker is used on a limited basis as an online poker platform. Bwin moved to the platform following its merger with PartyPoker back in 2012, promoting their bwin.party site throughout Europe. A number of operators use PartyPoker to operate sites in Italy and France. In early 2013, ACFpoker, PMU Poker and bwin came together to form a consolidated network running on PartyPoker. The network previously supported a number of skins, allowing sites to customize the look of their interface; however, this practice was largely discontinued in 2005, with sites now operating on the same style of platform if using PartyPoker.

What’s Ahead for PartyPoker?

Because Betfred provides more than just online poker, industry insiders speculate that GVC has plans to make PartyPoker a full network rather than a standalone poker platform. GVC currently has a sportsbook business that operates under two brands–Paradise Poker and BetBoo. The two brands are going to be made obsolete in the near future with all sports betting sites moving to the PartyPoker platform. Because GVC already has the infrastructure in place to support full iGaming, it seems likely that PartyPoker will soon become a full service provider offering everything from sports betting to online casino gaming to online poker.

The Right Time to Be in the Business

When you examine the current state of the iGaming market, it seems that the timing for GVC to expand PartyPoker to a full service network couldn’t be better. As strict regulations in many markets around the globe have made it difficult to turn a profit, small networks are finding it harder to compete. This is what’s behind the many mergers and buyouts that have taken place in Europe and other parts of the world. By positioning PartyPoker as a large full service network, GVC can hope to attract business from small operators. GVC would assume the burden of ensuring compliance with regulations, sparing smaller companies from many of the costs of complying with regulations. As a result, smaller operators would have the chance to remain competitive, and GVC has the potential to draw in revenue from around the world.

While Betfred is poised to move from what’s presently the largest full service poker provider in the world, the iPoker network, it seems likely that their migration is to a platform that could soon become a major competitor for iPoker. The iGaming industry is now waiting to see what lies ahead both for Betfred and for PartyPoker, and how it might change the landscape of poker networks as we currently know them.

NJDGE Approves GVC License

GVC Holdings has received further good news recently, after it was announced that the New Jersey Division of Gaming Enforcement (DGE) has finally granted approval for GVC to join the state’s online gambling market. The whole license application process took just four and a half months to complete, and as GVC CEO Kenneth Alexander announced after receiving the positive news:

“I am delighted the DGE has confirmed that GVC meets its stringent regulatory requirements. This is an important development for GVC.. should further regulated opportunities in the US arise.”

The application process also seems to have been unaffected by the fact GVC has consistently offered its product in gray markets. Case in point, while Bwin.party pulled its services from almost two dozen unregulated jurisdictions in 2013, GVC subsequently reentered these countries following its bwin.party acquisition for $1.72 billion in February of this year. This includes such grey markets as Germany, Greece, Poland, Brazil, Turkey, Ukraine, and Argentina. GVC had previously stated that it was prepared to leave the US market rather than lose access to its other important markets, and as Alexander explained at the time:

“One of the issues BwinParty has had is that it’s tied itself in knots and relied a lot on the US business opening up, and obviously it hasn’t really opened up in the way they had hoped. That has damaged their business. The US is not a big part of our overall strategy. If we don’t get a New Jersey license or if we think the US business is going to continue to lose money, no matter what, then we would take us out of the US.”