Betsson eyes Dutch geographic expansion gains with €27.5m Holland Gaming Technology deal

Business
Rob Simmons

Updated by Rob Simmons

Last Updated 14th Mar 2024, 07:22 AM

Betsson eyes Dutch geographic expansion gains with €27.5m Holland Gaming Technology deal

Betsson Group - who own over 20 brands, including casino sites - has confirmed a €27.5m ($29.6m) deal to acquire Dutch licensed operator Holland Gaming Technology Limited, and its game studio subsidiary Holland Power Gaming B.V.

The deal is understood to be on a cash and debt-free basis, meaning the company will incur no debts as a result of the deal, which is financed through Betsson’s own liquid assets.

'Higher Share of Revenue'

Of the total consideration of €27.5m, €16m will be paid immediately upfront on the close of the transaction, while deferred payments of €9m and €2.5m will be paid in six months and twelve months respectively.

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

The acquisition is subject to post-closing approval by the Kansspelautoriteit (KSA) which regulates the Dutch market, governing licensing, regulation and conduct of regulated gaming entities.

Game Supplier Scoop

Dutch-licensed Holland Gaming Technology Limited offers games under its Dutch-native goldruncasino.nl website and the goldruncasino.com international equivalent.

Holland Power Gaming B.V. is a game development company in the Netherlands that supplies casino games exclusively for Holland Gaming Technology Ltd.

Launching in October 2021, the Dutch online gambling market has seen slower growth in 2023 than it did in the preceding period, with annual Dutch gross gambling revenue (GGR) growing by just 17% between January and August 2023, compared to 33% growth in the same period of 2022.

Overall, GGR totalled €1.33bn (£1.15bn/ $1.40bn) in the previous 12 months. Active player account numbers fell by 4% from 859,000 in January to 826,000 in July 2023, with channelisation to legal operators standing at 93%.

On The Up

Betsson recently reported a 14% year-on-year increase in its group revenue for Q4 2023 to €251.9m. This was punctuated by a 25% increase in casino revenue, while sportsbook revenue dropped 5%, operating with a slightly reduced margin of 6.2%.

Company EBITDA rose 40% to €71.9m, with an EBITDA margin of 28.6%.

On a full year basis, company revenue grew 22% to €948.2m, with company EBITDA growing 52% to €262.7m. Betsson also recently celebrated its 60th anniversary, having been founded in 1964 by the father of current group CEO Pontus Lindwall.

 

Meet The Author

Rob Simmons
Rob Simmons

Rob started out in journalism as a staff writer for Gambling Insider, before moving to EGR in 2018 where he wrote about diverse subjects including regulation, sports betting, igaming and the legislative expansion of sports betting across the US market. A keen blogger and freelance writer, Rob also studies Krav Maga and enjoys cinema, science-fiction conventions and supporting Tottenham Hotspur.

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