By Mark McCauleyPublished November 08, 2018 09:30:18The sports betting firm HCA will be closing its investment banking and investment banking advisory business as part of a deal that has the backing of the Australian Securities and Investments Commission (ASIC) and the Australian Financial Review.
The news was first reported by Fairfax Media in a story titled HCA to close investment banking, investment banking advice, and investment advice and advisory business.
It is understood the investment banking arm will be liquidated and replaced by a new business that will focus on the sports betting business, including the sports information business.
“The Australian Securities & Investments Commission is very pleased with the outcome of this transaction,” HCA said in a statement to the Financial Review, adding the new business will be launched in the coming months.HCA’s investment banking services include investment advisory, advisory services, investment management, and advisory services to clients in the sports industry.
The company also provides advisory and financial services to other investors in sports and entertainment businesses including sports ticket sales and ticket sales management.HCF said the news would not impact the HCA Sportsbet division or the sports trading desk.
The HCASportsbet division is one of the country’s largest sports betting operators, with a turnover of more than $500 million in 2016.
Its business has been a focus of scrutiny since its inception and the regulator has made it clear it wants to make sure the industry is operating in the best interests of investors.
The Australian Sportsbet Council said it is pleased the investment bank’s decision to close the sportsbet business would not affect the HCF Sportsbet business, which was established in 1879 to provide investment advice for the sports and leisure industry.
“We are very pleased that HCA is no longer part of the HCBSportsbet business.
It is a very good outcome for the HBC and the broader sportsbet industry and a reflection of the growing trust in the value of investing in sports,” said Chris Paine, the council’s CEO.
Mr Paine said it was “extremely important” the regulator recognised the value and importance of the sports bet business.HBC’s board has been considering the news since mid-December and is still weighing its options.
“While this news does not have a material impact on our business, it will require a significant investment to make it sustainable,” HBC said in its statement to The Sport Bible.
“Investment in sports betting has become a critical component of the value proposition of the sport betting business in Australia.
As the sector grows, so does the need for a more diversified investment mix.”HCA will continue to invest in our business through a combination of strategic partnerships and in-house resources.”
The HBCSportsbet operation was the subject of a $3.2 billion investigation by the Australian Federal Police (AFP) in March.
The Australian Securities Commissioner is investigating whether the HCOs conduct breached its fiduciary duty.
The investigation found the firm failed to meet its duty to act in the public interest.
HCA has also faced a number of allegations of money laundering related to its dealings with clients.HCOs shares have fallen by more than 30 per cent in recent weeks as a result of the AFP’s probe.
The ACCC is also looking into the firm’s trading practices.