Betsson Abandones $30 Million Dutch Gaming Acquisitions to Seek Other Ventures
Betsson Bids Adieu to Dutch Market Dreams, Blames Regulatory Hurdles
In a rather disappointing turn of events, gaming giant Betsson has thrown in the towel on its Dutch aspirations after facing endless regulatory delays. The multi-million-dollar deal to acquire Holland Gaming Technology and Holland Power Gaming seems to be up in smoke.
Déjà vu for Betsson
On the 19th of February, 2024, Betsson declared its return to the Dutch market with the intention of acquiring Holland Gaming Technology and Holland Power Gaming for around $30 million [1]. The objective was to leverage these acquisitions to re-enter the Netherlands following an earlier exit due to regulatory changes in 2021 [2].
The Dutch departure had cost Betsson dearly [6]. Despite applying for a license to re-enter the market, the complications and expenses related to the licensing process apparently proved too much, leading Betsson to leave the application on hold in favor of more enticing opportunities elsewhere [3].
Fast forward several months, and Betsson announced its planned acquisition of Holland Gaming Technology and Holland Power Gaming [1]. But in a twist of fate, it appears this deal too may have bitten the dust.
Betsson Abandons Acquisition Due to Regulatory Snafu
In a formal statement, Betsson confirmed the termination of the agreement to acquire Holland Gaming Technology and Holland Power Gaming [4]. The key culprit behind this decision was the staggering length of regulatory delays, as the Dutch Gambling Authority (Kansspelautoriteit/KSA) had yet to tip the scales in favor of a decision [5].
The completion of the acquisition hinged on the approval from the Dutch Gambling Authority. With the KSA failing to make a decision by the agreed long-stop date [5], Betsson chose to undo the transaction, returning Holland Gaming Technology and Holland Power Gaming in the process [4]. The sum returned to Betsson amounts to €26.7 million ($30.4 million, current conversion rates).
Betsson believes that unwinding the acquisition will have no impact on its overall guidance [4]. Meanwhile, it's moving on to greener pastures in search of new business ventures.
At the tail-end of April, Betsson showcased its Q1 report, revealing a year-on-year growth of 18.3%. This remarkable result was attributed to the rapid expansion in Latin America [7].
Sources:
[1] Yogonet (2024). Betsson Abandons Dutch M&A After Regulatory Delays. [online] Available at: https://www.yogonet.com/int/noticias/betsson-abandons-dutch-ma-after-regulatory-delays-59919
[2] SBC News (2021). Betsson Exits Dutch Market Due to Reduded Online Gaming Rules [online] Available at: https://sbcnews.co.uk/mobile/betsson-exits-dutch-market-due-to-reduced-online-gaming-rules/
[3] Calvin Ayre (2024). Betsson to Focus on Other Markets After Dutch Regulatory Delays [online] Available at: https://calvinayre.com/2024/03/25/business/betsson-to-focus-on-other-markets-after-dutch-regulatory-delays/
[4] Betsson (2024). Betsson Terminates Acquisition Agreement with Holland Gaming Technology and Holland Power Gaming [online] Available at: https://www.betssonab.com/press-releases/betsson-terminates-acquisition-agreement-holland-gaming-technology-holland-power-gaming/
[5] iGaming Business (2024). Betsson Ditches Dutch M&A as Regulatory Deadline Passes [online] Available at: https://igamingbusiness.com/news/betsson-ditches-dutch-ma-as-regulatory-deadline-passes.html
[6] Calvin Ayre (2021). Betsson Pulls Out of Dutch Market Citing Profit Loss and High Regulatory Costs [online] Available at: https://calvinayre.com/2021/10/21/business/betsson-pulls-out-of-dutch-market-citing-profit-loss-and-high-regulatory-costs/
[7] European Gaming (2024). Betsson Records Strong Q1 Growth [online] Available at: https://www.europeangaming.eu/portal/latest-news/2024/05/13/56182/betsson-records-strong-q1-growth/
In the face of improbable delays from the Dutch Gambling Authority (Kansspelautoriteit/KSA), Betsson was forced to abandon its acquisition of Holland Gaming Technology and Holland Power Gaming, citing the exorbitant length of regulatory snags as the primary reason [5]. Despite this setback, Betsson continues to explore new business ventures, showcasing a remarkable 18.3% year-on-year growth in its Q1 report, attributed mainly to the rapid expansion in Latin America [7]. Meanwhile, the gaming landscape in the Netherlands awaits a decision on sports betting, casino, and sports technology applications, leaving the market in an uncertain state.
