Payments provider EML Payments (ASX: EML) has announced a deal that will facilitate a new range of reloadable cards for gaming brands in Europe.
EML said it had signed an agreement with GVC Holdings, a UK-based and listed company, via its European subsidiary, EML Payments Europe.
GVC is currently one of the world’s largest sports betting and gaming groups, operating in both the online and retail sectors.
The company and its subsidiaries own a comprehensive portfolio of established brands that serve betting clients in over 20 countries including Ladbrokes, bwin, Coral, Sportingbet, partypoker, PartyCasino and Gala.
As part of its growth in the betting and gaming hierarchy, GVC acquired Ladbrokes Coral Group in March this year and is now the UK’s largest high street bookmaker, with over 3,500 betting shops.
For starters, the deal means that GVC customers can use the cards to immediately access their winnings and remit funds back into their gaming account – a move that’s expected to be popular among customers and could drive additional market traction.
Large betting centre
Sporting bets made as part of the range of global online brands totalled in excess of £9 billion (A$16 billion) last year.
The industry remains divided with the impact of online vendors squeezing out high-street retail outlets. GVC has effectively tried to grab a foothold in both markets to establish a firming dominance over the British gaming industry.
The tie-up between EML and GVC, therefore, means stronger exposure and potentially greater commercials for EML.
Immediately after announcing its agreement, EML said it has scheduled to roll out its “reloadable winnings card” and will confirm the move in the next 90 days.
As an example of its business model, EML launched a payments card in the Caesars Palace Casino in Las Vegas, Nevada in conjunction with its partner PayWith Worldwide, last month.
EML establishes various rewards and payments card including innovative points programs to drive enhanced customer loyalty and engagement.
In relation to its GVC deal, EML said it could not definitively estimate the popularity of the promotion and is “unable to accurately estimate future ‘gross debit volume’ that will be derived from this program.”
EML did say that it “expects the GDV to revenue conversion ratio to be materially in line with other Reloadable card programs the group operates.”
Furthermore, the GVC deal would not be included in this financial year and would not impact its already reported guidance.
The first indication of the commercial impact of the GVC agreement is likely to be revealed at EML’s annual general meeting scheduled for November this year.
Today’s news helped EML shares up 6.3% up to $1.50 per share in early morning trading.