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A well-known online gambling firm, Betsson AB, recently announced the acquisition of betFIRST, a well-known sportsbook and gaming provider in Belgium. The purchase, which is worth EUR 120 million, represents Betsson’s tactical entry into the Belgian market. A cash earnout payout of up to EUR 3 million is included in the agreement, subject to a number of criteria. Through this endeavor, Betsson hopes to accomplish profitable expansion with a strong focus on growth within regulated areas.
2011 saw the establishment of betFIRST, which has since become a significant force in Belgian online gaming. With a sizable customer base and significant revenue growth, it focuses on sports betting and dice games. With licenses for both online dice games and online sports betting in Belgium, betFIRST has established itself as a dominant brand in the market there. The business also runs about 450 retail outlets, owns a gaming arcade, and has an online presence. BetFIRST achieved adjusted EBITDA of 10.0 million euros and net gaming revenue of 51.2 million euros in the most recent fiscal year.
In addition, prominent French casino operator Groupe Partouche and Betsson have partnered strategically. With this partnership, online gaming services geared toward regulated markets will be offered. With Betsson’s experience in the online gaming industry and Groupe Partouche’s dominance in brick-and-mortar casinos, the alliance offers a special chance to provide the local market an alluring online casino experience.
Groupe Partouche manages offline casinos in Belgium with the possibility to develop into an internet casino license, as well as land-based casinos in France and Switzerland. The collaboration will be able to provide a wide selection of online casino products in Belgium thanks to this license. The internet casino service is anticipated to debut in 2023, subject to securing the required licenses from the Belgian regulator. Both Betsson and Groupe Partouche are dedicated to fostering their partnership and looking into new growth prospects.
Pontus Lindwall, CEO and President of Betsson, indicated his eagerness to enter the Belgian market with Groupe Partouche. He stressed the strategic alignment between Betsson’s growth plan, which focuses on entering locally regulated or soon-to-be regulated areas, and the acquisition of betFIRST. Lindwall emphasized Betsson’s scalable business strategy and how these actions will eventually boost profitability and drive revenue growth.
Betsson will get essential access to the very competitive Belgian market through the acquisition of betFIRST and the strategic alliance with Groupe Partouche. It will also be able to expand its geographic reach and improve its revenue share from regulated markets. While Betsson intends to continue running the betFIRST sports betting operation as it is now, the company will later look into any synergies.
Betsson will make use of its current cash reserves and credit facilities to pay for the acquisition. The betFIRST transaction is expected to be completed around July 5, 2023, and it is not subject to regulatory approval. In order to streamline the purchase process, Betsson has hired Lazard as its finance advisor and Gernandt & Danielsson as its primary legal advisor, assisted by Van Bael & Bellis and Edson Legal as legal advisors in Belgium.