Talks between Mybet and a would-be financial investor that was hoped to save the floundering company have fallen through, resulting in the German firm announcing that it will be filing for insolvency.The gambling company had initially announced in July that it intended to sell its customer-facing operations to an unnamed investor, leaving Mybet to focus solely on the B2B side of their business, but a statement from Mybet on Tuesday said that “conditions set by the investor which could not be fulfilled” resulted in the closing of the talks.
Insolvency
In the same statement, Mybet explained that the board of directors was preparing an application for insolvency, with the applications expected to be filed on Friday.Mybet had tried several approaches to avoid this issue, but alongside the talks with the prospective saviour falling through, which followed on from another possible buyout failing due to “differences of opinion” and the Frankfurt am Main II Tax Office turning down the company’s application for a stay of enforcement.
The issues
Back in April, Mybet delayed the release of its financial statements, meaning that the latest financial reports come from back in November 2017, when the company stated that its revenue had dropped by 28% in the first nine months of the year, with casino revenue falling by over 50% during the same period, something Mybet blamed on the blocking of its Greek site.This was followed by further issues when the Novomatic Group dropped out of the German market, leaving Mybet with no live casino offering for a period of time in early 2018.With it seeming like there are no options left for Mybet, insolvency was the only choice left, and the application on Friday will be sad news for fans of the German gambling company.