Betsson plans expansion in the Netherlands with 27.5 million euro deal

Betsson Group – which owns over 20 brands, including casino sites – has a €27.5 million ($29.6 million) deal to acquire Dutch licensing operator Holland Gaming Technology Limited and its gaming studio subsidiary Holland Power Gaming BV confirmed

The deal is understood to be on a cash and debt-free basis, meaning the company will not incur any debt as a result of the deal, which will be funded by Betsson’s own liquid assets.

“Higher share of sales”

Of the total consideration of €27.5 million, €16 million will be paid immediately upon completion of the transaction, while deferred payments of €9 million and €2.5 million will be made in six and twelve months, respectively.

“The acquisition will contribute to a higher share of revenue in locally regulated markets over time and is in line with Betsson’s strategic objective to achieve profitable growth through geographical expansion,” Betsson said in a statement confirming the deal.

The acquisition is subject to subsequent approval by the Kansspelautoriteit (KSA), which regulates the Dutch market and governs the licensing, regulation and conduct of regulated gaming companies.

Game Supplier Scoop

Holland Gaming Technology Limited, licensed in the Netherlands, offers games on its Netherlands-based website goldruncasino.nl and the international equivalent goldruncasino.com.

Holland Power Gaming BV is a game development company in the Netherlands that produces casino games exclusively for Holland Gaming Technology Ltd. delivers.

The Dutch online gambling market started in October 2021 and recorded slower growth in 2023 than the previous period. Annual gross gaming revenue (GGR) in the Netherlands increased by only 17% between January and August 2023, compared to growth of 33% in 2023 over the same period of 2022.

Overall, GGR over the last 12 months was €1.33 billion (£1.15 billion/US$1.40 billion). The number of active player accounts fell by 4% from 859,000 in January to 826,000 in July 2023, with channelization to legal operators at 93%.

On the rise

Betsson recently reported a 14% year-on-year increase in its group revenue for the fourth quarter of 2023 to €251.9 million. This was highlighted by a 25% increase in casino revenue, while sports betting revenue fell 5%, operating at a slightly reduced margin of 6.2%.

The company’s EBITDA increased by 40% to €71.9 million, with an EBITDA margin of 28.6%.

On a full-year basis, the company’s revenue increased by 22% to €948.2 million, while the company’s EBITDA increased by 52% to €262.7 million. Betsson also recently celebrated his 60th birthdayTh Anniversary, which was founded in 1964 by the father of the current CEO Pontus Lindwall.

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