Finnish iGaming platform provider Finnplay has confirmed that its Viral Interactive subsidiary has withdrawn its B2B operations from regulated markets including Sweden and the UK.
Finnplay said that the decision was made in response to worsening market conditions and increasing operational costs, with Viral Interactive also terminating its marketing agreement with Global Gaming’s Nano Casino with immediate effect.
The new online casino brand was launched in Sweden last September under Viral Interactive’s Swedish licence after the operating license of Global Gaming’s Ninja Casino brand was revoked.
Last month Swedish gambling regulator Spelinspektionen refused Viral Interactive’s request to add Global Gaming’s Ninjacasino.se domain to its current licence, which include NanoCasino.com, Mobocasino.com, Spinlovers.com and Swedencasino.com, among others.
The regulator said that it would be “highly inappropriate” given that Viral Interactive was collaborating with two subsidiaries of Global Gaming, Elec Games and SafeEnt Limited, who have been found to have committed serious violations of the country’s gambling legislation.
“We regret the decision to close our white label operations in these markets, especially after having successfully co-launched many exciting brands over the years,” said Finnplay Group founder Martin Prantner.
“However, being realistic, market conditions are not favorable for smaller operators in an ever-tightening regulatory framework resulting in diminishing profitability. In the months to come, we will review our strategic options and restructure our business accordingly.”
Global Gaming CEO Tobias Fagerlund commented: “Of course, it is sad that Viral Interactive chooses to discontinue their B2B operation on regulated markets. It is important for us to emphasize that it has only a minor impact on Global Gaming’s revenue and our assessment is that the decision does not affect our previously communicated goals.”