Betsson Acquires Belgian Operator and Partners Up with Groupe Partouche
Renowned Swedish holding company Betsson AB recently added another gambling operator to its long list of acquisitions. The complete takeover of betFIRST sees Betsson gain access to the regulated Belgian gambling market. In order to offer something new to this new market, the Swedish company has also struck a strategic collaboration deal with leading French casino operator Groupe Partouche to bring a new range of online casino games to the market. The betFIRST acquisition will cost Betsson €120 million.
Renowned Swedish holding company Betsson AB recently added another gambling operator to its long list of acquisitions.
?Olga Subach/Unsplash
Holding a B2C gambling license in Belgium, betFIRST was established in 2011 and is active in the sports betting and dice games segments. Since its inception, the operator has a proven track record of implementing effective strategies to boost overall revenue and increase the customer base on their platform. While most of its operation takes place online, betFIRST has its own gaming arcade in Belgium. In the annual revenue report looking at last year’s numbers, betFIRST generated €51.2 million, with an adjusted EBITDA of €10 million. Now that Betsson will acquire all of the operator’s shares, it will want to enhance the performance of the operator in a Belgian gambling market that is known to be competitive. Betsson will pay a total fee of €120 million for this takeover, out of which €117 million will be paid upfront on a cash and debt-free basis. The balance €3 million will be paid as an earnout payment if the agreed-upon conditions are met. The acquisition of betFIRST is the first step of Betsson’s two-step plan to deploy to compete in the Belgian gambling market.
The second step is as crucial as the first because it includes a strategic partnership that is expected to help betFIRST step up its game and reach a whole new level. Soon after the agreement for the takeover was reached, Betsson struck a collaborative deal with renowned French casino operator Groupe Partouche. Established in 1973, Groupe Partouche has evolved into one of the European market leaders in its segment. Over 40 casinos operate under the brand, which also owns golf courses, hotels, restaurants, spas, and a gaming club. The entity has turned 50 this year, and over all these years, it has understood the needs of the markets it is in and evolved accordingly. Over 20 years after its establishment, Groupe Partouche got listed on the Paris Stock Exchange. With a significant base of almost 4,000 employees, the French operator is all set to assist Betsson in its latest endeavor of creating new online casino games that will be offered via betFIRST in Belgium. This will be the first joint online casino offering in the jurisdiction that the Belgian Gaming Commission regulates.
There are a lot of similarities between the gambling markets of Belgium and France. The Gaming Commission de Kansspelcommissie (KSC) regulates the Belgian gambling market almost like l’Autorité Nationale des Jeux (ANJ) monitors the French gambling market. Recently, these two regulators came together to sign a cooperation agreement to strengthen their supervisory and regulatory measures. Presidents of both regulators signed the agreement during the Gambling Regulators’ European Forum (GREF) event earlier this month. Under this collaboration, the ANJ and KSC are now authorized to perform joint investigations and publish joint reports based on the findings. This move was initiated primarily to fight against all the major illicit activities that directly threaten the integrity of both gambling markets. The activities include fraud, money laundering, and terrorist financing. The two regulators will also look at effective licensing procedures, regulation of iGaming and land-based operators, and measures to increase player safety.
Betsson expects an extremely effective partnership with Groupe Partouche as the two entities work on the new online casino games that could turn betFIRST into one of the biggest operators in Belgium. The process of the betFIRST takeover has been initiated and is expected to reach completion by July 5 this year. The Betsson AB CEO and President, Pontus Lindwall, expressed his excitement about the company’s first acquisition since the KickerTech takeover.
“We are very excited about entering the Belgian market together with our partners Groupe Partouche and see a strong strategic fit with the acquisition of betFIRST. At Betsson, our growth strategy revolves around extending our presence into new markets, particularly in locally regulated or soon-to-be regulated markets. Belgium, where the online gaming market is regulated since 2011, aligns very well with this strategy. Our business model is highly scalable, and these initiatives will add revenue and strengthen our profitability over time.”
Betsson started the year with a 30 percent revenue spike in Q1
The acquisition of betFIRST will see the Belgian operator become one of the many brands that operate and flourish under Betsson. The Swedish iGaming company owns more than 20 brands operating in several regulated jurisdictions worldwide. While the focus is primarily on Europe, Betsson brands have also probed into a few North and South American jurisdictions. Overall, the global performance of these brands was reflected in this year’s first quarterly revenue report.
Betsson confirmed a record-high quarterly revenue in the opening three months of this year. The company generated quarterly revenue of €221.9 million, comprising a 30 percent year-on-year (YoY) increase with an organic increase of 38 percent. Almost all jurisdictions reported growth in revenue, as there were no major spikes in Denmark and Sweden. In the gambling segment, the fourth quarter usually performs better than the first quarter, but the Q1 2023 revenue also posted a 0.6 percent quarter-on-quarter increase. EBITDA was up 62 percent YoY, while the EBITDA margin increased by almost five percent.
Groupe Partouche’s half-year turnover increases by 15.2 percent
Earlier this week, Groupe Partouche published a report comprising consolidated turnover for the second quarter (February to April) of 2023. The report also comprised revenue statistics from the first half-year (November 2022 to April 2023). The Gross Gaming Revenue (GGR) continued to grow in the second quarter and registered a 14.1 percent YoY spike after collecting revenue of €169.1 million.
Meanwhile, the aggregate turnover between November last year and April this year was €215.6 million. This figure was also in the green as it recorded a 15.2 percent increase. The Net Gaming Revenue (NGR) came to €176 million, 14.8 percent higher than the NGR of the corresponding period last year. In the quarterly report, the NGR was up almost 12 percent after reeling in €79.3 million.
