Betsson is preparing to enter the online casino market in the Netherlands, by acquiring a Dutch internet gambling group.
After posting increased revenues for 2013, online gambling operator Betsson is preparing to expand on the Dutch market. At the end of the fourth quarter of 2013, the company’s management board decided to invest in future growth.
Betsson’s total revenues reached SEK2.5 billion (EUR279.1 million or $380.7 million) last year, registering a 12% increase from the SEK2.2 billion made during the previous year. Profits will help the company expand further through the acquisition of new online gambling sites in the Netherlands.
New player on the Dutch market
The Swedish company bought Oranje and Kroon, a Malta-based internet gambling group catering to players from the Netherlands and Belgium. With changes coming to Dutch gambling laws in 2015, this will ensure Betsson’s leading position on the newly-regulated online casino market.
Company president Magnus Silfverberg told reporters: “With this acquisition, Betsson gains a strategic position in the Netherlands and become one of the biggest players on the Dutch market which is expected to be re-regulated during 2015.”
This would give Betsson’s profits from locally-regulated markets exceeding 25% of the group’s total profit. The deal also gives Betsson a larger and more significant presence in continental Europe.”
The value of the purchase amounts to EUR 100 million. According to the deal, EUR 60 million are payable in Betsson shares and the rest in cash.