Betsson Group, a leading online gambling operator, has announced its return to the Dutch iGaming market with two new acquisitions. The company has bought Holland Gaming Technology Ltd, a licensed online casino operator, and Holland Power Gaming B.V., a game development studio that supplies exclusive content to Holland Gaming Technology. The total value of the deal is €27.5 million, which will be paid in cash and deferred payments.
Betsson’s geographic expansion
The acquisitions are part of Betsson’s strategy to increase its share of revenue from locally regulated markets and diversify its geographic footprint. The company withdrew from the Netherlands’ grey market in 2021, when it committed to no longer accept Dutch customers on its international websites ahead of the launch of the country’s licensed market. However, it later withdrew its application for a licence in July 2023, citing significant delays and costs in the process.
By acquiring an already-licensed business in Holland Gaming Technology, Betsson will be able to re-enter the market in a streamlined way. Holland Gaming Technology operates games via two different websites in the Netherlands, goldruncasino.nl and goldruncasino.com. Holland Power Gaming is an online game studio that develops content for the B2C operation.
Betsson’s financial performance
The acquisitions are expected to contribute to Betsson’s profitable growth, which the company reported in its latest financial results. Betsson posted a record-breaking revenue of €1.1 billion in 2023, up 24% year-on-year. The company also saw a strong growth in its online casino segment, which accounted for 83% of the total revenue. Betsson added 325 new games to its portfolio in Q4 2023, which boosted its casino revenues by 25% year-on-year.
Betsson’s CEO Pontus Lindwall said that the company’s performance was driven by its product innovation, customer focus, and operational excellence. He also said that the company’s ambition was to deliver sustainable and profitable growth through geographic expansion and product diversification.
Betsson’s future plans
The acquisitions are subject to post-closing approval by the Netherlands Gambling Authority (KSA), which is expected to be granted soon. The integration of the businesses into Betsson’s operations will start immediately after the closing. Betsson said that it will leverage its expertise and resources to enhance the customer experience and grow the market share of Holland Gaming Technology and Holland Power Gaming.
Betsson also said that it will continue to explore new opportunities in other regulated markets, such as Latin America, Central and Eastern Europe, and Central Asia. The company said that it has a strong balance sheet and cash flow, which enable it to pursue strategic acquisitions and investments.
