Q&A: Shay Segev, chief operating officer, GVC

With all eyes focused on the impending Sportingbet/bwin platform integration, GVC Holdings caught the industry off guard last month by announcing a surprising scoop for its B2B business.

The London-listed firm signed a 10-year agreement with Betfred which will see the latter migrate its online sportsbook and gaming business to the bwin platform. And it sounds like more B2B deals could be just around the corner for GVC.

eGaming Review caught up with the company’s chief operating officer, Shay Segev, to find out more about the Betfred deal and why he believes it is a “win-win” situation for both parties.

eGaming Review (EGR): Why did you decide to sign a 10-year deal with Betfred?

Shay Segev (SS): I’ve got to be honest, it was a bit surprising when thinking about it for the first time, but if you give it more thought it is absolutely brilliant really. GVC and bwin combined is one of the world’s leading sports betting operators and we have our own proprietary technology. I think there is a real gap in terms of proven B2B propositions by operators who actually understand how the technology needs to be operated.

For us it actually makes a lot of sense as well. If you look at the work we are doing with regards to the integration between GVC and bwin.party, the UK market is somewhere we need to expand and invest into our product and offering. The fact that Betfred brings this know-how to the table through the execution of this B2B deal will help us develop in new directions. Plus, we bring them into a more international aspect. So it’s a win-win situation for everybody.

EGR: Do you have plans to really ramp up the B2B side of GVC?

SS: It’s definitely one of the areas within the business we expect to grow but, of course, B2C is our main business. If we are able to focus on our B2B business and leverage the investment we put into our technology and services and operate for strategic partners like Betfred, I think it is a great opportunity. The aim is to make a return on the investment in technology we are making, while bringing some know-how and growing revenues. I’m definitely looking forward to signing more tier one B2B deals. Maybe not immediately but as we move along I’m sure more deals will come.

EGR: How long do you predict the migration to take?

SS: I think it is unlikely to be before the end of the year. We have only just signed the deal and we have only really agreed commercial terms. There is more to do in the coming weeks and we will sit with the relevant people of Betfred and start planning.

EGR: Does the fact that you’re an operator put you at an advantage over other B2B companies?

SS: It’s definitely an advantage. From my B2B experience, if you have the operational side of B2C and then when you come in and poach a new business, in a way it’s easier for you to understand and focus you’re needs. If you’re changing the core technology of a business, it takes time with the technology, best practices and the way of doing business etc. I think when you come in from the angle of actually operating the technology as well then it gives you an advantage.

EGR: Do you foresee any competitive problems by working with Betfred?

SS: Betfred is a very UK-oriented business and in sports betting we are less UK-oriented at this point. At the end of the day, you can see what is happening with regards to consolidation and regulatory changes. Many of the operators have become quite advanced and with Betfred I see very little conflict whatsoever as the UK market is already quite competitive. If you look at a platform like OpenBet, for example, there are six or seven of the main operators using its technology but just need to operate in a different way. Betfred is a very unique proposition as it has a very strong brand in the UK, it has a large retail business and they will need to take advantage of that.

EGR: How can you help Betfred leverage that omni-channel opportunity?

SS: I was helping with Coral’s omni-channel proposition only a few months ago and there is certainly a huge opportunity for Betfred. There will be some transformation within the interactive business itself and we will work with them on that. If the opportunity comes and Betfred is interested in expanding it further then we would be interested. At some point, whether it is with us or not, they will need to look at how they can do some integration between retail and online. Today it is something which has become fundamental and necessary in a market like the UK.