Mybet set to file for insolvency

Mybet Holding’s management board confirmed this (Tuesday) afternoon that it is preparing an application to open insolvency proceedings after talks with a strategic investor collapsed.

The board said in a statement that the company owes €4m (£3.5m/$4.5m) in sports betting taxes and faces “imminent illiquidity”.

An application covering all three of mybet’s German group companies will be submitted to the relevant local court this Friday.

Last month, mybet appeared to have secured a lifeline when a “non-exclusive term sheet” was signed with an unnamed investor for the Berlin-based online sports betting and casino company’s B2C online business.

“The background for the application for the opening of insolvency proceedings is the failure of discussions with potential investors,” the company said in a statement.

“Today, the discussions with a strategic investor reported… on July 13 regarding the possible sale of the online business of mybet Holding under the domain www.mybet.com were closed. These talks failed due to conditions set by the investors which could not be fulfilled.”

The board also said that a contributing factor towards the initiation of insolvency proceedings was the decision of the Frankfurt Tax Office to reject an application filed by the group’s Malta-based company, Personal Exchange International, to suspend enforcement regarding outstanding sports betting taxes.

When contacted by iGamingBusiness.com, an agency representing mybet said that the identity of the proposed investor, with whom talks had collapsed, would not be publicised due to a non-disclosure agreement.

When asked about the impact of the insolvency proceedings on customers, the agency added to iGamingBusiness.com: “While insolvency procedures are under way, existing customers should not be affected as mybet operates under the Malta Gaming Authority license requirements which protect customers in numerous ways. The service continues to be available for customers until further notice. So currently there should be no effect.”

Mybet’s share price has nosedived since the company announced on June 12 that it had curtailed talks with a potential investor after “differences of opinion concerning the implementation of strategic and operational collaboration in the online sector” emerged during a 30-day period of exclusive talks.