Sports betting company Sportech has announced the intended sale of its Dutch based business Sportech Racing BV, to RBP Luxembourg for a fee of €3.25m ($3.97m).

Sportech Racing BV currently enjoys a monopoly over tote betting and horseracing gambling markets in Holland, with services available to bettors in 47 betting venues around the country and via the company’s website runnerz.nl.  Its current license was acquired in June 2017 and will last 5 years.

As part of the sale, Sportech will receive an initial upfront fee €2.8m ($3.42m) when the deal is closed and a further €450,000 ($550,000) during January 2019.

Commenting on the sale Andrew Gaughan, CEO of Sportech, said: "The Proposed Disposal represents an attractive opportunity to realise value following the successful licence extension and restructuring of the business by management as we increase focus on US growth opportunities.

“Sportech will continue to provide RBP, under a long term contract, its ongoing tote services and also has a strong working relationship with them focused on developing and selling their French racing pools into our vast footprint of global customers."

The deal is pending finalisation and approval by local regulatorsand is expected to be complete before the end of 2018.