Betsson has announced it is acquiring Dutch licensed games operator Holland Gaming Technology and games studio Holland Power Gaming for €27.5 million (£23.5 million/$29.6 million).
The transaction will increase Betsson’s presence in the Netherlands and will be funded from the group’s liquid assets.
Of the €27.5 million to be paid on a cash and debt free basis, €16 million will be paid up front, while €9 million and €2.5 million will be deferred over six and 12 months, respectively.
Betsson was previously seen as easing its operations in the Netherlands, having withdrawn its application for an online gambling license in the Netherlands in July 2023, citing “significant delays” in the approval process.
However, this change in strategy will mean that Holland Power Gaming will continue to supply games exclusively to Holland Gaming Technology, which holds the gaming licence for casinos in the Netherlands.
In a group statement, Besson said the deal would “contribute a higher proportion of revenues from locally regulated markets” and fit with the company’s plans to “achieve profitable growth through geographic expansion.”
Bettson’s record performance in 2023
The move comes after Besson announced it was on track to achieve a record 2023, with revenues rising 22% to €948.2 million in the year to December 31, 2023.
Throughout 2023, EBITDA will increase 52% to €262.7 million from €172.4 million in 2022. EBITDA margin was 27.7% compared to 22.2% in the prior year.
Betsson also reported operating profit (EBIT) of €210.5 million, up 60% year-on-year, with the EBIT margin at 22.2%, up from 16.9% in 2022.
Casino revenue was the major driver of Betson’s fourth quarter figures, with casino revenue increasing 25.1% year-on-year to €182.8 million in the quarter and accounting for 72% of group revenue.
Betfirst launches in Belgium
Earlier in February, sports betting and gaming operator BetFirst, which was acquired by Betsson last year, launched an online casino in Belgium.
Betsson acquired Belgium’s Betfirst Group for €120 million in June 2023 and also signed an agreement to partner with Groupe Partouche for access to the Belgian casino market.
The new online casino will receive an A+ casino license through a deal with Middelkerke Casino, and BetFirst aims to become the “leading national operator” of online casinos.
BetFirst’s expansion into online gambling comes after it became the first operator to receive an online gambling licence in Belgium following market regulation in 2011.
Besson plans further expansion into Europe
Following a partnership with French casino operator Groupe Partouche, moves to add an online casino to Betson’s Belgian offering had been expected.
The partnership is expected to initially focus on Belgium before expanding to other regulated markets.
Two of these markets are France and Switzerland, where Groupe Partouche operates land-based casinos in both countries. Online casinos are legal in Switzerland and currently illegal in France, but there are growing hopes that they will be legalized in the near future.
Betson has also received a license to offer online sports betting in France in September 2023, a move that comes after it announced its entry into the Serbian market earlier the same month.
