A pioneering gaming company, Betsson, has entered the acquisition deal with the online casino operator Holland Gaming Technology. The €27.5million deal will reportedly also see the casino’s game development vertical Holland Power Gaming integrated into Betsson’s operations, as well as enable the prominent gaming hub to take advantage of the Holland Gaming’s license to operate in the Netherlands.
27.5 Million Acquisition Deal:
According to a source, the acquisition, set to expand Betsson’s footprint in the Dutch market, will be paid in three installments. €16 million will be reportedly transferred upon acquisition, and followed by €9 millionand €2.5 million installments due in six and, respectively, 12 months after the deal is signed. As reported by the source, the acquisition deal comes after Betsson seemingly intended to retrieve from the Dutch market. The company reportedly withdrew its online gaming license application in 2023 claiming significant delays in approval procedure.
But it is now coming back to the market to seemingly use the latest acquisition to tailor the offerings according to the market requirements and thus strengthen its capabilities and competitiveness in the attractive jurisdiction. Therefore the deal will reportedly see the Holland Power Gaming studio exclusively supplying content to Holland Gaming Technology for its operations in the regulated Dutch market. In the press release, Betsson stated that the deal will“contribute to a higher share of revenue from locally regulated markets,” indicating that the company plans to “deliver profitable growth through geographic expansion”.
Record 2023 Revenue:
Betsson is a one of the largest online gaming hubs in Europe with corporate background developed since 1960. The company invests in and manages fast-growing gaming stakeholders to continuously grow its market presence and reputation. As a result of such a strategy, the holding company registered record operating results in 2023 to see its revenue rising to record€948.2 million level, or 22% up when compared to the 2022 result. In 2023, Betsson generated the EBITDA of €262.7million to experience a 52% growth over the previous year. Operating income was €210.5million to stand for a 60% year-on-year increase. As reported, the company saw an exceptional Q4 2023 performance to report €182.8 million in casino revenue which accounted for 72% of the group revenue.
European Expansion:
Betsson’s 2023 record revenue figures may still be improved with the acquisition of sports betting and gaming operator Betfirst. The €120 million deal entered in June 2023 saw the online casino launch in Belgium earlier in February 2024. The new online casino has reportedly received the first-class casino license and is looking to become the leading online casino operator in the jurisdiction. As reported, the strategy is based on the fact that Betfirst was the first to obtain the online casino license for Belgium upon the 2011 market launch. Betsson’s expansion to Belgium and the Netherlands represents an intention of the leading gaming hub to cover regulated European markets. The recent acquisitions of Betfirst in Belgium and Holland Gaming Technology in the Netherlands is reportedly set to be followed by French and Swiss market entries to solidify Betsson’s position in the European online gaming market.