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Purple Capital buys a majority stake in Powerbet Gaming
South African private equity company Purple Capital has acquired a majority stake in online gambling company Powerbet Gaming, which recently launched its latest online offering in the form of internet sports betting site Voltbet.com under a bookmakers license issued by the Western Cape Gambling and Racing Board.
The effective date of the transaction is 1 October 2010.
Voltbet was launched after two years of planning at the end of May 2010 and has since enjoyed extensive advertising exposure as a result of a strategic alliance with media house Primedia, its exclusive marketing partner. Client sign ups have reportedly been very encouraging in the growing online market in South Africa.
Online sports betting in South Africa is licensed, legal and highly regulated, a company statement advised this week.
"The parallels between sports betting and financial trading houses are clear: clients trade on an outcome in the immediate future - "sports on weekends, markets during the week", the statement claimed. "The respective client bases sit side by side and, in fact, there is a large overlap.
"Internationally, particularly in the UK, a number of financial trading houses own and operate their own sports betting businesses. The model is clear: more turnover, more profit.
"Powerbet will to a large extent be an operational extension of Global Trader - both companies have state-of-the-art online trading platforms, effective marketing strategies and prudent risk management at the heart of the business models. The cross selling opportunities between the client bases and the synergistic benefits to the Purple Capital Group are obvious."
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