Betsson reenters the Netherlands with twin acqusition

Betsson reenters the Netherlands with twin acqusition

Betsson reenters the Netherlands with twin acqusition
Betsson has made a return in the highly-coveted Dutch iGaming market, with the company utilizing a multi-pronged stratagem. As a result, the company has acquired both an operator, in the face of Holland Gaming Technology Ltd, as well as an established local iGaming studio, Holland Power Gaming B.V. Both entities are licensed by Kansspelautoriteit, the local Dutch gambling regulator, which will have to give its post-closing approval of the deal in order for the transaction to clear in full. The sum of the investment is set at €27.5m and is payable in both cash and debt, financed with liquid assets by Betsson. Out of the sum €16m is paid upfront with another €9m and €2.5m to be paid six and twelve months after the closure date, and the deal is said to have been closed as of February 19, 2024. Outlining the transaction on its website, Betsson went into details about each of the two purchases and why they were important to the international gambling behemoth. Holland Gaming Technology Ltd is a licensed local operator that runs www.goldruncasino.nl and www.goldruncasino.com, allowing Betsson to gain a quick foothold in the coveted market and bring itself up to speed. Then, there is Holland Power Gaming B.V., which is a gaming content powerhouse that will allow Betsson to drive differentiation and also expand its production capabilities. Betsson is confident that the deal would significantly help it penetrate the Dutch iGaming market, and help it expand in a core European market. Betsson is confident that this move will help it strengthen its share of revenue from the local market as it seeks to regain presence in a jurisdiction that it had to leave amid the flurry of regulatory uncertainty. Betsson specifically withdrew from the Netherlands back in 2021 as it did not at the time hold a license from the Kansspelautoriteit. The company explained that it had run into trouble acquiring the license, facing unexpected delays. Its new strategy, though, has been to go directly after local companies and buy them out, rather than trying to build from scratch. This move may be more sensible too, considering that the market is changing rapidly and advertisement options are diminishing as the Kansspelautoriteit has been tightening the regime. Image credit: Betsson Group

20 FEB 2024

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