Pferdewetten.de AG, German horse racing’s dedicated racebook, has secured new investor capital to bolster its business transformation programme.
The capital is required for Pferdewetten.de (Horsebets.de) to launch a new retail subsidiary to support its online platform upgrade and to further expand its Sportwetten.de (Sportsbets.de) subsidiary.
Publishing an H1 interim update, Pferdewetten.de disclosed that existing shareholders had generated €5.1m in working capital raised by the issue of €320,000 new shares priced at €16 each.
In March, positive developments saw the Regional Council of Darmstadt grant a licence extension to Pferdewetten.de, allowing the company to operate ‘stationary wagering operations’.
Darmstadt’s approval saw Pferdewetten.de subsequently launch a pilot Sportwetten.de betting shop in Bonn (Rhine-Westphalia).
Group CEO Pierre Hofer commented: “July 1, 2022, marks a milestone in the company’s history: our first shop under the Sportwetten.de brand was opened in Bonn. Since then the company has been responsible for the platform, the betting offer and the setting of odds.
“We would like to take this opportunity to thank our shareholders once again for their financial support as part of the successfully implemented capital increase at the beginning of the year.”
Leading the business overhaul, Hofer announced to investors Pferdewetten.de an ambitious plan to launch 76 betting points across Germany by June 2023.
He also told them he was confident that a home-bred Pferdewetten.de will secure further regional Lander concessions to build its retail network – despite regional lawmakers’ backlash against gambling businesses.
“We currently have six permits, of which we have already opened four shops and the remaining two will open in the coming weeks,” he said. “Sixteen other permit applications are before the authorities for a decision. Since the processing of applications currently takes a comparatively long time, we currently expect these shops to open between September and October 2022.
“Essentially, the approval procedures mentioned relate to already existing sites, whose operators will change providers and will work with our company in the future. In addition, we are applying for the relevant permits for three completely new locations.”
The launch of Pferdewetten.de retail network follows a 2021 upgrade of the company’s online platform, which saw it enhance its racing market inventory with new international fixtures.
The critical upgrades were required as part of Hofer and investors’ plans for Pferdewetten.de and Sportwetten.de to become leading domestic players of the GlüNeuRStv – Germany’s Fourth Interstate Gambling Regime.
“The international betting markets are increasingly taking centre stage,” Hoffer commented on upgrades.
“The high quality racing and betting offer outside of Germany continues to enjoy increasing popularity with our customers, which leads to a constant and significant shift in stake and revenue streams to these markets.”