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Exclusive Q&A with New Matchbook Management Regarding the Recent Sale and Changes
The new management at Matchbook declined to do a phone interview with SBRtv, but they did agree to answer a set of questions in written form. SBRtv Judie also presented a video summarizing the situation for those who aren't familiar with the situation.
SBR: What's the basic deal with what just happened with Matchbook? Who bought it and why? What problems was it having before the sale and why was it having them?
MB: Matchbook has been purchased because of the strength of the Matchbook brand and the potential of Matchbook to be rolled out to other sports, throughout the world. It has been purchased by a private UK investment group with both the capital and expertise to significantly expand its operations and product offerings, and intends to do so in a professional and legally compliant manner. Matchbook itself had no operating problems whatsoever prior to our purchase but its potential could not be properly realized while partially operating in a jurisdiction where its operations were of questionable legality and where payments and marketing were complicated and expensive.
Players should rest assured that all US based player account balances will be promptly and fully returned to affected players. In addition, all non-US player balances will be ring fenced in an account which will kept separate from Matchbook’s operating accounts. This will assure that all player funds will always be kept safe.
SBR: Will management be the same as before?
MB: New management with extensive experience within the gaming industry is in place.
SBR: There's been a lot of speculation and questioning concerning Matchbook leaving the US market. Why did the new owners decide to pull Matchbook out of the US market after buying it? Was it an independent decision or was there "pressure" from outside somewhere? Why was the old Matchbook able and willing to serve US customers, but the new Matchbook is unable/unwilling to take US customers?
MB: There was no external pressure to make this commercial decision. Before completing the purchase the new owners of Matchbook were informed by its legal advisors that facilitating wagers between one or more users located within the United States might constitute a violation of US law. Matchbook intends to comply with all applicable laws. We are not in a position to comment on the previous activities of Matchbook or the policies of its previous owners.
SBR: People are wondering why someone would buy Matchbook and then get rid of what was assumed to be the essential majority of its customers (the US base). There have been a lot of analogies made on SBRForum.com about this. To quote just two: "Wouldn't these new owners be better off just starting a website from scratch? Isn't this like buying McDonald's and turning it into a store for vegetarians?” and "It's kind of like buying Hooters and cutting off beer and wings." Can you address this?
MB: It is an “assumption” that the essential majority of Matchbook customers were US based, whereas in fact this is not the case. We believe that our investment in the site will draw a number of new customers, and the increased transparency and financial stability of Matchbook and its rock solid back end infrastructures will only assist this process. If you look at the site today there is still plenty of volume available. The fact that former US customers are extremely upset that Matchbook cannot now facilitate their wagers illustrates how well the Matchbook brand is respected and how much people like and enjoy using our site. Setting up a new site would have carried none of this goodwill. The new owners are taking a long-term view with this investment and are sure that these affected customers will be able to return to the site at some point in the future once the applicable legislation changes. In short, the new owners consider the existing Matchbook name is of great value, and part of this value is the extremely robust operating software platform that Matchbook’s customers have grown to trust and rely upon.
SBR: Some people with US accounts that will be closed are concerned about their funds on deposit. Will everyone get paid?
MB: Yes. The financial position of Matchbook is stronger now than before. There would be absolutely no point buying a valuable brand and then not paying the customers, which would immediately destroy the brand value.
SBR: Why was the announcement that Matchbook would be changing owners and that US-based accounts would be closed not made sooner, so that people could have had more options to handle their account balances?
MB: The new owners were obviously not able to make any announcements until the Antiguan regulators had approved their plans for ownership and the shares were transferred, as prior to share transfer the new owners did not control the business. The decision was made to block access to US based accounts to be effective at the same time as transfer of ownership. This meant that Matchbook complied immediately post our purchase in accordance with the legal advice it has obtained.
SBR: Some people are not happy with the payout options for the accounts being closed. Many want book-to-book transfers, why is that not an option? Some aren't comfortable with being required to send sensitive CC information in an unsecure email. Some with large balances don't want one huge wire hitting their bank accounts, and would prefer several smaller wires, or checks. Why are none of those options available?
MB: The new Matchbook management has provided as many payment methods as possible while taking appropriate and necessary account of expert counsel on the issue. The payment methods provided by Matchbook to US customers are specifically chosen due to the very high likelihood that player balances will get to the affected customers without interference.
If Matchbook users are uncomfortable emailing their CC information it can be called into Matchbook’s toll free number. 1-877-586-9477.
SBR: What is the plan for the future of the new Matchbook, short-term and long-term? It was seen as the main exchange for US sports, with a notably good commission deal for MLB in particular. Will the new Matchbook still be focusing heavily on US sports, and if so, where will the liquidity come from?
MB: The new owners intend to invest substantial capital in Matchbook to increase its global footprint and provide enhanced services to its customers worldwide, and wishes to make such an investment on the basis that the business is legally compliant with all applicable laws and regulations. We believe that Matchbook will remain the main global exchange for US sports and in the near future users will be offered even more liquidity and betting markets in these sports. This liquidity will come from the new ownerships previously established relationships with European and Asian sports bettors.
The new Matchbook will continue to provide the best liquidity and most attractive commission rates in the industry while expanding our European and International sports offerings with the addition of improved liquidity, new odds types and a new user experience including multi-language and multi-currency platform global customers.
SBR: Will the new Matchbook be looking to compete head-to-head with Betfair?
MB: The new Matchbook will be much bigger and better than the old Matchbook, with a wider and deeper product offering. There is more than one stock exchange in the world, and there will be more than one betting exchange.
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