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Fred and Peter Done are done with online gambling it seems as they have sold their online gambling operation, BetFred, netting some £27.2m from the sale.
The Internet gaming division Betfred NV, registered in the Netherlands Antilles, had been underperforming for a number of years after a belated entry to the market, and the company said the disposal made "commercial sense", reports James Chapelard of Crane's Business (Manchester Division).
According to Crane's, the casino gaming operation will remain on the Betfred.com website and the group has not sold its web-based sports operation which takes bets on live sporting events. The sale of Betfred NV's share capital netted The Done Brothers £27.2m, according to recently-filed accounts for Lightcatch Ltd, the parent company of their gambling and sports interests.
Fred Done admitted he had gotten into the online gambling sector late, starting his company in 2005.
In the six months it was still part of Lightcatch, it only generated £2.3m in operating profit on a £4.5m turnover. In its last full year in 2007 it made operating profit of £3.3m on £9.2m turnover.
Details of the sale were not immediately known.
Barry Nightingale, Betfred's finance director, said: "We have sold the online business, but we're bound by the terms of the deal not to reveal any more details. "It made commercial sense, but with our new partners the Betfred brand will continue to go from strength to strength in the online arena."
Sales jumped from £949.1m to £1.1bn in the year to March 2008 while operating profits climbed 22.7 per cent to £13.2m. The figures include bets placed over the web and phone.
BetFred gained notoriety in 2007 when Fred Done offered his $50,000 Mercedes to any Israel player who scores the winning goal against Guus Hiddink's Russian side during a pivotal matchup.
The actual sale took place in late 2008 and was only revealed this week.
Jagajeet Chiba, Gambling911.com
