Spiffbet Continues Expansion with Helmicasino Acquisition
Swedish iGaming provider Spiffbet continued its strategic expansion in Europe with a brand-new online casino acquisition. The company has been in the news recently for announcing its new casino, Supersnabbtin. It will offer Swedish players a range of games, including slots, table games, and live dealer games. The brand will operate as a sister concern of Supernopea in Finland. A few days later, Spiffbet announced the addition of Helmicasino.com to its portfolio in the same jurisdiction. The online casino has been dormant since the beginning of 2023 due to financial difficulties, but Spiffbet hopes to make the website live again before the end of this year. Spiffbet wants to give a better game selection to its audiences, starting with Supersnabbtin in Sweden and moving ahead with Helmicasino in Finland.
Swedish iGaming operator Spiffbet expands its online casino business by acquiring Helmicasino. ?Raphael Andres/Unsplash
Spiffbet, a Swedish gambling operator, has experienced notable shifts in its business focus throughout its evolution. Initially, the company engaged in the production of betting software and subsequently transitioned to the development of slot machines. However, in recent times, Spiffbet has reoriented its emphasis toward online casino operations, which is evident in its proactive acquisitions and the divestiture of its game development business to Million Games. The company has broadened its influence in the Swedish gambling market, emphasizing a commitment to fortifying its standing in its native land. Moreover, the decision to divest its game development business signifies a purposeful effort to streamline operations and exclusively concentrate on the management of online casinos. This strategic realignment implies a deliberate move to optimize its business model and capitalize on the flourishing online casino segment. With the sale of its game development business to Million Games, Spiffbet has shifted its primary focus to the operation of online casinos. The acquisition agreement enables Spiffbet to maintain access to the games for its casinos, creating a mutually beneficial arrangement. This strategic move highlights Spiffbet’s dedication to strengthening its presence in the online casino sector and utilizing collaborations to enrich its gaming portfolio.
Helmicasino is an online casino platform operating in Finland. The website offers a variety of games, including slots, jackpots, and live casino games, from providers such as NetEnt, Quickspin, and Evolution Gaming. The casino emphasizes its commitment to providing a game environment tailored to the needs of Finnish players. It also features promotions and a loyalty club for its users. The website was run by another company in Finland under a different license but had shut down early in 2023 due to changes in payment conditions. As a result, Helmicasino has been lying dormant since the start of 2023. Spiffbet plans to relaunch the website before the end of the current year.
The online gambling operator has acquired the dormant domain Helmicasino.com for SEK300,000 from a former online casino partner that previously ran the site in Finland. Spiffbet plans to relaunch Helmicasino.com with a Malta license and focus on the Finnish market. The relaunch is expected to involve significant additional costs beyond marketing, and the site is anticipated to be live again in Finland early next month. Spiffbet aims to offer the casino with better game selection and improved payment options, focusing on increasing revenues. The company has significantly brought down its cost level since the beginning of 2022 and is now focusing on increasing revenues. This acquisition cost Spiffbet around SEK300,000 and aligns with its strategy to invest more in its online casino business. It follows the company’s launch of Supersnabbt.se in Sweden as a sister brand to Supernopea.com.
Henrik Svensson, Spiffbet’s CEO, expressed the company’s excitement to offer the casino again to the market with better game selection and improved payment options.
“We really thought it was a shame that Helmicasino.com was closed, but we understood at the same time that it was necessary as the conditions to continue operating on the existing license were no longer there. We are happy to offer the casino again to the market with better game selection and better payment options. Spiffbet as a company has brought down the cost level significantly since the beginning of 2022. Now we focus on increasing revenues. The launch of Supersnabbt.se and Helmicasino.com is a clear component of this. We started with the launch of Supersnabbt.se, which looks promising, and now we continue with Helmicasino.com in Finland.”
Spiffbet sold its game development business to Million Games
Last month, the Swedish gaming operator announced the sale of its game development business to Million Games, a Swedish game studio. The deal would reportedly cost around SEK3.5 million. The transaction includes the acquisition of STHLM Gaming Sweden, the entire Rhino Gaming portfolio, and related intellectual property rights. This strategic move reflects Spiffbet’s refocused operations, with a shift in priority towards its proprietary casino sites. The decision to divest the game development arm was driven by a decreasing focus and investment in this segment, as well as the company’s refocused strategy on its casino business. Spiffbet’s CEO, Henrik Svensson, emphasized that the sale of the game development business aligns with the company’s transition to becoming a prominent player in the casino vertical.
The sale of STHLM Gaming and Rhino Gaming to Million Games allows Spiffbet to continue using the games from the divested business for a year, free of charge, at its casinos or through partner businesses. This arrangement will positively impact Spiffbet’s earnings from the third quarter onwards. The acquisition by Million Games provides an opportunity to enhance its game portfolio and establish a stronger presence in a competitive market. Thomas Nimstad, CEO of Million Games, expressed enthusiasm about the acquisition, highlighting the potential to expand the game development process and strengthen the company’s position in the industry. This sale marks the end of Spiffbet’s involvement in game development, signaling a new phase as the company transitions into a leading player in the online casino sector.
Spiffbet reports increased cost efficiency in Q3
The Swedish online gambling operator published its financial results for Q3, 2023, on November 19. The company reported a decrease in its revenue compared to the same period in 2022. Spiffbet has reported a net loss in the third quarter of this year; however, there is a slight improvement year-on-year (YoY), with the loss being 1.3% less than last year. The company’s revenue for the quarter was SEK 9.38 million, which is a 37% decrease from Q3 2022. Spiffbet’s net loss for the quarter was SEK 6.27 million, and the loss per share was SEK 0.004, an improvement from SEK 0.016 in Q3 2022. The company’s revenue rose by 397.4% in 2021, reaching SEK 95.4 million, almost five times the revenue recorded in 2020. The company divested its game development arm to Million Games AB in August 2023, citing insufficient funding to continue running the business successfully.
The company has stated that it began the fourth quarter with a significantly higher player activity. The acquisition of Helmicasino will also add to the company’s player base outside of Sweden. In October, there was a 28 percent increase in revenues across Supernopea, TurboVegas, and Metal Casino, with a gross margin of 34 percent. The recent organizational shift involving an external vendor overseeing affiliate marketing procurement is proving effective in driving growth while reducing customer acquisition costs. The introduction of Supersnabbt.se has surpassed expectations regarding customer acquisition, albeit with a concurrent rise in marketing expenses. The primary focus for this quarter involves constructing and refining the customer database for Supersnabbt.se and the upcoming launch of Helmicasino.com. The robust influx of customers experienced thus far in the quarter is anticipated to persist throughout the remainder of the period.
