Nektan has UK license Suspended
In a move that has sent shockwaves through the web gambling industry, computer software provider Nektan has already established its license to operate suspended by the UKGC (UK Gambling Commission).
The news comes as an investigation into practices by the UKGC of the way the Gibraltar based company operates concluded that it absolutely was unfit to service the online gambling market in britain.
This really is being viewed as a major blow for Nektan, who have gained an amazing foothold in britain in recent years, while Nektan-only operators are also anticipated to be hit hard and will be forced to re-strategize their service offering.
Their license suspension arrived to full effect by April 27th, 2022 and the stipulations set up by the UKGC imply that it is illegal for Nektan to supply gambling services to UK-based operators and in addition via its websites from both a B2B (Business to Business) and B2C (Business to Consumer) standpoint.
It is often notably of a rough 12 months for Nektan, who went back in to administration in April 2022 in the beginning of the COVID-19 pandemic and as a result, have not fully had the opportunity to recuperate, regardless of the industry in general posting impressive results.
Ahead of the pc software provider went into administration, it had entered in to an agreement with Grace Media, which really is a subsidiary of white label Active Win to buy its assets in a £200, 000 deal. As a result, Nektan was to get monthly stipends as a result of this.
Who are Nektan?
Founded in 2011, the business was hailed to be a maiden white label company in the online gambling industry, that essentially offered software solutions for operator sites to effectively operate their own casino.
Providing everything from website development, design, CRM along with marketing solutions, they initially gained substantial traction, especially with smaller independent businesses on the market, which had recognized the potential to build their particular brand in what was being a thriving UK market.
Certainly one of their key selling points for customers was their (at the time), cutting-edge mobile technology that supported the build of their online casinos. Through this and how they positioned and marketed themselves, they saw an excellent initial response.
But seemingly a deep failing to innovate and respond on time to changes on the market and also technology saw them fall by the wayside, as bigger and better competitors gained an advantage to them.
From the beginning of 2022, the business started initially to encounter financial difficulties and thus, they were forced to stop trading on the London AIM (Alternative Investment Market) exchange.
The first mobile operators that Nektan was responsible include PlayUK. com (arguably the most recognised), Monster Casino, Jackpot Mobile, Spins Royale and Kerching.
Due to the company’s decline, their B2B division has been bought by Realtime Strategic Marketing Limited, that will be located in Gibraltar and as a result, has been rebranded as Markor Technology.
Caution for White Labels?
You will find several very successful and popular white label businesses in the internet gambling industry, however , lately, the key growth area has been on the software side.
Truly, the internet gambling industry is experiencing one of the biggest growth periods, with increased and more new markets opening which means a growth in more potential customers and, by extension potential for new operators.
In the key markets though, there are a huge selection of white label casinos, which notably saturates the industry and gives pc software providers such as for instance Microgaming an edge when it comes to new services that it could develop to focus on such a demand. New white label businesses, should truly proceed with caution.
Written for tobjl.info by Adiela de Bruyn on 09-05-2021