Although Media Corp. chief executive Justin Drummond claimed they were "very pleased" with the result of the sale, the sale price falls grossly short of the $20 million that Media Corp. purchased the domain for in 2005.
The history has been troubled since that time as the Unlawful Internet Gambling Enforcement Act was passed in late 2006, leading to a reduction in the site's traffic and revenues.
Google imposed a penalty on the domain from September 2007 through late 2009 which also contributed to gross margin falling an additional 62% from £1.1m to £410,000.
Big sales of gambling related domains have fluctuated wildly depending on global economic conditions. Poker.org sold to affiliate PokerCompany.com for $1 million, while Bodog purchased Slots.com for a whopping $5.5 million last May.
Zimba Analysis:
The relatively small price paid for a premium domain like Gambling.com seems to be a reflection of the current uncertain global gambling scene. With the largest world market, the United States, in turmoil due to recent DOJ action, the value of the domain address seemed quite limited.
Media Corp sold the domain for a whopping $17.5 million less than they paid for it six years ago. The site never lived up to its intended promise or profit potential and Media Corp seem to be cutting their losses and moving on.
I wouldn't be surprised if the buyer was one of the major U.S. land-based casinos who are hopeful of U.S. legislation to open up the market again in the coming future.
The relatively small price paid for a premium domain like Gambling.com seems to be a reflection of the current uncertain global gambling scene. With the largest world market, the United States, in turmoil due to recent DOJ action, the value of the domain address seemed quite limited.
Media Corp sold the domain for a whopping $17.5 million less than they paid for it six years ago. The site never lived up to its intended promise or profit potential and Media Corp seem to be cutting their losses and moving on.
I wouldn't be surprised if the buyer was one of the major U.S. land-based casinos who are hopeful of U.S. legislation to open up the market again in the coming future.
