In a strategic move that significantly bolsters its position within the Dutch gaming sector, Betsson AB has announced the completion of a €27.5 million transaction to acquire Holland Gaming. This acquisition is not only poised to enhance Betsson’s presence in the Netherlands, but it is also structured to be financed fully by the company’s inherent liquid assets.
The acquisition was made on a cash and debt-free basis, delineating a payment schedule wherein €16 million is to be paid upfront. This will be followed by deferred payments amounting to €9 million and €2.5 million, slated for settlement at six months and 12 months post-acquisition, respectively.
Betsson’s recent operational maneuvers in the Netherlands had shown signs of a retreating stance, particularly when the company pulled back its online gambling license application in July 2023. The withdrawal was attributed to “significant delays” encountered within the approval process. However, the latest strategy pivot is set to revitalize Betsson’s operations in the country; Holland Power Gaming will continue to forge games exclusively for Holland Gaming Technology, the arm that possesses a formidable casino gaming license in the Netherlands.
In a communication issued by the group, Betsson has underscored that the deal holds the promise of “contributing to a higher share of revenue from locally regulated markets.” The acquisition is perfectly in sync with Betsson’s overarching blueprint aimed at “delivering profitable growth through geographic expansion.”
This expansionary progression mirrors Betsson’s record-breaking performance in 2023, which saw the company’s revenue surge by a robust 22%, reaching a monumental €948.2 million by the year’s close on December 31. Moreover, the company witnessed its EBITDA climbing by 52% to €262.7 million in 2023, a sizable leap from €172.4 million registered in the preceding year. This growth was embodied in an EBITDA margin of 27.7%, which indicated progress from the 22.2% margin of 2022.
Further financial achievements for Betsson included operating income (EBIT) totaling €210.5 million, a 60% year-on-year increment. Correspondingly, the EBIT margin improved to 22.2%, compared to 16.9% in the previous year.
A key contributor to Betsson’s uptick in the fourth quarter figures was the casino revenue which, accruing to €182.8 million, signified a 25.1% increase from the preceding year and represented 72% of the group revenue.
Previously, Betfirst—a sports betting and gaming operator acquired by Betsson in the previous year—launched an online casino in Belgium. This venture was part of a €120.0 million transaction consummated in June 2023. Additionally, Betsson has formed strategic ties with Groupe Partouche to infiltrate Belgium’s iCasino market.
Betfirst secured its newest online casino offering, backed by an A+ casino license facilitated by its partnership with Middelkerke Casino; with ambitions of becoming Belgium’s foremost online casino operator. Betfirst has also been recognized as the pioneer to secure an online betting license in Belgium, post the regulation of the market back in 2011.
Betsson’s collaboration with the French casino operator Groupe Partouche was earmarked to commence operations in Belgium, then scale to other regulated markets. Identifiable targets include France and Switzerland, noting Groupe Partouche’s land-based casino engagements in these nations. Switzerland has already given the thumbs-up to online casinos, while France, though currently prohibitive, is on the cusp of legalizing the same.
Adding to its licensing victories, Betsson secured permission in September 2023 to proffer online sports betting in France. This expansionist drive followed its entrée into the Serbian market, marking a consistent pattern of strategic market penetrations in line with its growth-oriented agenda.
