Viral Interactive has announced the decision to withdraw from its white label business and marketing partnerships in regulated markets, including Sweden and the UK, bringing an end to a number of collaborations.
The group, which forms part of Nordic-based igaming platform provider Finnplay Group, cited that the decision is in response to worsening market conditions and increasing operational costs.
Following the decision, the Finnplay Group joins a growing list of igaming platform technology providers choosing to exit the traditional white label business across a number of global markets.
Martin Prantner, founder of the Finnplay Group, commented on the withdrawal decision: “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.
“However, being realistic, market conditions are not favourable 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.”
Among the partnerships brought to a close as a result of the decision is the collaboration with Global Gaming, which most recently saw the latter fail with a request to transfer the Ninjacasino.se domain to the firm as part of ongoing effort to resurrect the brand in Sweden.
Global Gaming initially partnered with Viral Interactive, holder of a Swedish license for commercial online gaming in August 2019, to launch the Nano Casino online gaming entity, after regulator Spelinspektionen revoked its own licence earlier in the year.
Tobias Fagerlund, CEO of Global Gaming, added: “Of course, it is sad that Viral Interactive chooses to discontinue their B2B operation on regulated markets. It is important for us to emphasise 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.”