Suspended Gaming Operator Goldchip to Return to UK via Acquisition by FinTech Firm

Posted on: June 6, 2022, 09:34h. 

Last updated on: June 6, 2022, 10:14h.

Goldchip Limited recently temporarily lost its gaming license in the UK for not following the rules. It has now found a way back into the game, agreeing to sell the business for an unspecified sum.

Big Ben in the UK
An iconic double-decker bus passes in front of Big Ben in London. The UK’s online sports betting market could see the return of an operator who recently had its license suspended. (Image: YouTube/The Hypnotic Clock)

A financial technology (FinTech) company that operates in both the financial and betting sectors is looking to buy the Leeds-based sports betting operator. Deer Cashmere Holding Company, also known as Swifty Global, will soon be the company behind Goldchip.

Swifty claims the deal will speed up Swifty’s route to market. It will also give “critical mass” to its growth plans. These plans include listing on a major exchange, but no established time line is in place for any maneuvers.

Goldchip to Get Back Online

For its 2021-2022 fiscal year, Goldchip reported revenues of £75 million (US$94 million). At the same time, it saw net profits of £1.4 million (US$1.75 million). This was despite having significant one-off expenses.

Goldchip employs 14 staff based in Leeds, according to the company, and has also hired three UK industry professionals to help with the development of its sportsbook. Swifty, on the other hand, has a 14-member software development and implementation team which will assimilate Goldchip’s employees.

The online betting platform had nearly 750 VIP clients with high net worth, many of whom are celebrities or sports stars. However, it isn’t clear how many of these, if any, left after the UK Gambling Commission suspended its license.

That suspension was the result of anti-money laundering failings and questions over the platform’s social responsibility commitments. However, those problems can be solved by the acquisition, as Swifty holds a UK gambling license.

Swifty stated that the company hopes to increase the client base to 900 by the end of this year. It will simultaneously introduce its casino and sports prediction app to Goldchip clients in the near future.

The acquisition will be partially funded by vendor finance, restricted shares, and cash. Swifty anticipates that by leveraging its in-house software technology, it will significantly reduce Goldchip’s operating costs and increase profitability. This will allow Swifty to free up cashflow for growth.

More Digital Tech in Gaming

Swifty Global has developed two mobile apps for sports predictions and a digital wallet. The latter encompasses artificial intelligence, as well as cryptocurrency and blockchain transactions.

The company recently received its Curacao and UK gambling licenses. It is now preparing for the launch in the UK of its unique sports predictions app.

Swifty Predictions, a high-frequency, low-value betting app, gives users the ability to predict the outcome of all major sports, including American football and baseball, basketball, tennis, soccer and more. The app covers both in-play and pre-match predictions.

The product will allow users to make hundreds of micro predictions in minutes. They can swipe right to participate in the bet, or swipe left for a skip. Swifty’s patent goes beyond sports, and could include the ability to allow predictions in other entertainment segments, such as reality TV.