Update on Sportech's U.S. business & VAT Claim

RNS Number : 1921Z

Sportech PLC

04 February 2014

 



04 February 2014

Update on Sportech's U.S. business - significant progress made in Connecticut - and update on Group VAT claim

Sportech PLC ("Sportech") is pleased to announce that its extensive gaming business in Connecticut, operating under an exclusive licence for betting on horse and greyhound racing in the state, has achieved two key milestones in the development of its multi-channel gaming strategy.

Sportech opens first of its kind 10,000 sq ft sports bar, restaurant and betting venue after $4m development

Sportech Venues, the owner and operator of the Winners betting and entertainment venues in Connecticut, will today open a new flagship sports bar, restaurant and betting venue in Bradley.

The new facility will allow customers to bet on horse and greyhound racing while enjoying the amenities of a high-end sports bar and restaurant. It is the first such venue of its kind anywhere in the state of Connecticut and will significantly enhance Sportech's operation, which last year handled $190m in bets.

The venue will be able to accommodate 300 customers and features 70 large screen TVs, a golf simulator, meeting room and outdoor dining and is expected to appeal to a wider and younger range of customers.

Sportech also announces a partnership with baseball legend and experienced restaurateur Bobby Valentine to provide all food and beverage services at the new venue.

The opening continues the considerable investment Sportech has made in the Winners brand over the last three years, with significant upgrades having now been completed at all 15 venues across the state.

Sportech launches major upgrade and commences marketing of its Connecticut online operations

Sportech Venues has also completed a major upgrade to the MyWinners.com website, Connecticut's only legal website for betting on horseracing, and will shortly commence a marketing drive to raise awareness of its online products and services.

Following an initial launch in 2013, these updates to the website will dramatically enhance the betting experience for customers, through a marked improvement in the website's user interface. MyWinners.com is fully licensed by the state and is the only legal betting website available in Connecticut.  A portion of every bet goes directly to the state.  

Commenting on these two developments, Ian Penrose, Chief Executive of Sportech, said:

"Since buying our U.S. business three years ago our considerable investment in people, facilities and customers has enabled Sportech to turn around a declining business into one that is growing.   

The development of our business in Connecticut, alongside our extensive betting services business, is an important part of our U.S. strategy and opening the new facility at Bradley and upgrading MyWinners.com are significant steps forward." 

VAT Claim Update

In March 2013 we outlined that the Group was successful in its VAT claim for £95m including simple interest at the First-tier Tribunal's Tax Chamber ("FTT"). In June 2013, Sportech was notified that Her Majesty's Revenue & Customs had been given leave to appeal this decision to the Upper Tribunal and the appeal hearing will be held on 29 and 30 April 2014.

In advance of the appeal hearing, Sportech has been in discussion with third parties to explore possible options to secure financial benefit in the event of the favourable decision of the FTT being ultimately reversed. These discussions have not resulted in a mutually acceptable position and have therefore been ended. The board remains confident in our arguments and a successful outcome of the appeal.

-Ends-

Contact:

Sportech PLC                                                                        

Ian Penrose, Chief Executive

Cliff Baty, Chief Financial Officer                                             

020 7268 2400

Sportech Venues

Ted Taylor, Managing Director                                                

[phone]

Brunswick Group LLP                                                          

Mike Smith, Tom Williams

[e-mail]

020 7404 5959

About Sportech PLC

Sportech PLC is a sports gaming and entertainment company and one of the world's leading pool betting organizations, focusing on highly regulated markets worldwide.  Sportech provides betting technology for football (soccer), horseracing and greyhounds, processing over $13 billion in bets annually with a presence in 30 countries.  Sportech is headquartered in London, England with operational offices in Liverpool, England, Atlanta, Connecticut, California, New Jersey, Netherlands, Germany and Ireland.  For more information about Sportech PLC, please visit www.sportechplc.com. 

About Sportech Venues, Inc.

Sportech Venues, Inc. holds the exclusive license to conduct off-track pari-mutuel wagering on horseracing, greyhound racing and jai alai in the State of Connecticut, in perpetuity. The company operates 15 off-track and sports bar wagering venues under the brand Winners in addition to the MyWinners.com website and a telephone account wagering service. A portion of every dollar wagered with Winners goes to the Connecticut General Fund, to local municipal tax funds and to funds for responsible gaming.  For more information about Winners, please visit www.mywinners.com.

 

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