Betsson, an online betting and igaming provider, has announced to streamline its UK-based brands and concentrate its growth in other more lucrative markets. The operator revealed that it will be shutting down eight of its nine brands currently operating in the UK.
Upon this announcement, all eight of its nine online casino and sports betting operations particularly: Betsafe, the flagship Betsson, Guts, Casino Euro, Racebets, Jackpot247, Live Roulette, and Kaboo, have already ceased taking in bets and deposits. The operator is currently in the process of contacting the customers of the eight brands. Betsson will repay all of the customer’s deposits while all outstanding bets would be paid out as winning bets.
The operator mentioned that its revenue from the UK represented only a fraction of the company’s overall revenue at approximately 3%. The operator also mentioned that it will be focusing its UK efforts through a single-brand strategy to not only increase efficiency but also create a positive impact from the UK market moving forward. Rizk, which the operator acquired along with three other brands from the Gaming Innovation Group earlier this year in a £30 million deal, will be the only remaining Betsson-owned brand in the UK.
This recent announcement is the latest in Betsson’s moves over the past few years in a bid to reduce its UK operations. Notably, the operator closed down its UK-based office back in late 2018.
Betsson explained its decision to further reduce its UK presence. The operator has revealed that its decision was prompted by the UK’s multiple regulatory changes introduced in recent years. It further went on to explain that these regulatory changes required extensive investments in technology, regulatory compliance, marketing and that with its current UK setup such investments were not sustainable for its current continued operations.
The operator held four gambling licenses from the UK Gambling Commission and operated nine brands under three different platforms. As it stands, the operator has returned the majority of those licenses to the regulator except for one, which is still undergoing review.
Despite this pullout from the UK market, Betsson will retain all of its brands and will look to bolster these brands in other more profitable markets. The operator also mentioned that there will be no need for a write-down of goodwill or trade as it will be using the eight remaining brands in the future.
Back in 2017, Betsson acquired several UK-based brands through its purchase of NetPlay. However, the investment never seemed to have produced significant growth in the operator’s UK market share. Despite its lacklustre performance in the UK, Betsson has seen significant growth in other markets such as Estonia. Earlier this year, the operator has partnered with TG Labs in launching its Supercasino.ee in the Estonian market. The two have been working together for a long time and sees the partnership as an opportunity to further grow under the operator’s brand. Also, Betsson’s published July financial update shows that the operator’s business is growing despite the pandemic as the group’s revenue for the year’s second quarter increased 20 percent to £134m.