The spread betting operator IG Group recently announced that it was unable to secure a sale of Extrabet and decided to close the sports betting operation.
While Extrabet employees are currently being laid off, the customer database was sold to Spreadex, which said the player accounts will be transferred on June 24.
Jonathan Hufford, Managing Director of Spreadex, stated: "In recent years we have invested heavily in state-of-the-art software and in building a team of friendly and approachable sports traders, so we are confident that the new account holders will be accommodated in a smooth and seamless process."
IG Group will receive annual payments for the next three years based on the revenues generated by the former Extrabet customers. Affiliates that sent players to Extrabet will receive nothing.
This is particularly sad considering that even at London Affiliate Conference few months ago, when everyone in the industry knew about IG Group intention to sell Extrabet, the affiliate managers representing Extrabet where pushing hard to sign new affiliates and have existing ones promote a soon to be demoted company.
Tim Howkins, CEO of IG Group, commented: "The sale of our sports customer list to Spreadex will enable us to focus entirely on our much larger financial business. We have known and worked with the management of Spreadex for many years and believe that they will offer an excellent service to extrabet's clients. We will work closely with them over the coming days to ensure that the transition is as smooth and effortless as possible for our customers."
Extrabet rating coverage is suspended (2.5+).
Spreadex rating is confirmed at 3, the spread betting site will remain under rating watch for the next few months.