Betsson’s strategic re-entry into the Dutch market with another acquisition

Lea Hogg March 1, 2024

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Betsson’s strategic re-entry into the Dutch market with another acquisition

Betsson, a renowned name in the iGaming industry, is poised to make a strategic re-entry into the Dutch market. The company has recently acquired a Dutch-licensed B2B and B2C iGaming company, Holland Gaming Technology Ltd, and its online game studio, Holland Power Gaming B.V., in a deal worth €27.5 million.

The acquisition and its implications

Holland Gaming Technology Ltd is a licensed online gambling operator in the Netherlands, while Holland Power Gaming B.V. is an online game studio that develops content for the B2C operation. The former operates games via two different websites in the Netherlands, goldruncasino.nl and goldruncasino.com.

On 19 February, Betsson announced that it has agreed to acquire both businesses for €27.5 million on a cash-free, debt-free basis. The acquisition will be financed with Betsson’s own existing liquid assets. Of the total consideration, €16 million will be paid upfront upon closing, with further deferred payments of €9 million and €2.5 million to be paid after six and 12 months, respectively.

The acquisition remains subject to post-closing approval by the Netherlands Gambling Authority (KSA). The integration of the business into Betsson’s operations is expected to contribute to a higher share of revenue from locally regulated markets. This move aligns with Betsson’s strategic ambition to deliver profitable growth through geographic expansion.

Betsson had previously withdrawn from the Netherlands’ grey market in 2021, when it committed to no longer accepting Dutch customers on its international websites ahead of the introduction of the country’s licensed market. After the licensed market launched, Betsson applied for a licence in the country, before eventually withdrawing its application in July 2023. The company cited the process of securing a licence as too lengthy and costly, following significant delays in the process.

However, the group maintained the possibility of reapplying for a licence in the future. By acquiring an already-licensed business in Holland Gaming Technology, Betsson should now be able to re-enter the market in a streamlined way.

This strategic move marks a significant milestone in Betsson’s journey, reinforcing its commitment to innovation, growth, and customer engagement in the iGaming industry.

The completion of the acquisition is subject to post-closing approval by the Netherlands Gambling Authority (KSA). However, the exact date of completion has not been specified in the available information.

Betsson AB (publ) (BETS-B.ST) is trading at SEK103.40 (0.98%).

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