Betsson has officially declared the launch of its latest platform in Italy, potentially setting the stage for a partnership with Inter Milan. The Swedish betting company has emerged as the leading contender to become the primary sponsor for Inter’s jerseys. The current arrangement between Inter and Paramount+ is set to conclude at the end of the season, prompting the Italian club to consider alternative options.

It is reported that the Swedish company is willing to provide Serie A’s major players with 30 million euros per year for the next five seasons. According to FcInterNews, Betsson has recently introduced a new platform in Italy.

However, should one expect the company to come to the US market? Vlad Lazurchenko, the JackpotSounds legal gambling expert does not anticipate that Betsson will expand its brand in the United States.

Betsson: General Background

Betsson, a prominent online gambling company, was founded in 1963 as AB Restaurang Rouletter in Sweden by Bill Lindwall and Rolf Lundström, later renamed Cherryföretagen AB. In 2000, it entered the online gaming sector by acquiring Betsson, then subsequently changed its name to Betsson in 2006.

The company is listed as Betsson AB on Nasdaq Stockholm, with a revenue of €777 million in 2022 and operating income of €131 million in the same year. It boasts a subsidiary, Betsson Malta Ltd, and employs 1800 individuals, concentrating on gaming sites like betFIRST, Betsafe, and NordicBet.

Here, Vlad Lazurchenko emphasizes that Betsson’s corporate history demonstrates strategic expansions and acquisitions over the years, including obtaining licenses in Greece and partnering with Norwegian Toppserien women’s football club Avaldsnes IL in 2021.

Betsson also entered the Mexican market and became a regional sponsor of the 2021 Copa América. In 2022, Betsson debuted online betting in Buenos Aires, Argentina, and reported a 13% organic traffic growth in various regions.

The company has been recognized with several prestigious awards, such as

• the Best Customer Service Award at the eGaming Review,
• Casino Operator of the Year, Racing Sportsbook of the Year, and
• Social Responsible Sportsbook of the Year at the 2021 SBC Awards.

Through its various subsidiaries, Betsson offers a comprehensive range of online gaming services, including

• casino,
• poker,
• bingo,
• sports betting, and
• scratch cards.

The company ensures responsible gaming and timely payouts, providing multi-language and multi-currency support to users.

Betsson has received positive reviews from its casino players, exemplifying its reputation and reliability.

Despite its substantial growth and expansion, the company does not currently have immediate plans for brand development in the United States, as evidenced by its recent operational focus in different regions such as Italy.

Main Reasons Why Betsson Not To Come to the US Market

Yes, Betssons penetrated the betting market in Italy. However, the company would not do the same with the US industry of online betting and gambling. This is supported by the fact that Betsson has recently focused on the Italian market, as indicated by the launch of their new platform in Italy, potentially leading the way for a partnership with Inter Milan.

There’s no current public indication of Betsson’s intention to develop its brand in the USA. Thus, given their recent operational focus and developments, it is reasonable to assume that Betsson’s attention is directed elsewhere and not toward the US market.

Focused Expansion Strategy

Betsson’s recent launch of a new platform in Italy indicates a concentrated effort on the Italian market rather than the US market.

The company’s strategic focus on the Italian market suggests that current expansion plans are oriented towards specific regions, diminishing the likelihood of immediate expansion into the US market.

Partnership with Inter Milan

Betsson’s potential agreement with Inter Milan exemplifies a targeted approach towards sports partnerships, particularly in key European markets such as Italy.

The emphasis on establishing corporate relationships with well-known European football clubs supports the notion that Betsson’s current strategy is not inclined towards immediate expansion into the US market.

Absence of Official Statements

The absence of official announcements or statements from Betsson regarding expansion initiatives in the US market contributes to the perception that the company’s current focus may be oriented elsewhere.

The publicly available information and official communications from Betsson do not indicate intentions to develop the brand in the USA, further strengthening the premise that their attention lies elsewhere.

These points collectively affirm the idea that Betsson’s recent activities and partnerships do not align with immediate plans for brand development in the United States.

Betsson’s Strategic Shift

In light of Betsson’s overarching success in the global gambling industry, particularly its strategic focus on the Latin American and European markets, it is plausible to examine the future prospects for its potential penetration of the US gambling market.

Historical Expansion Milestones

Since its founding in 1963 and its digital debut in 2000, Betsson has progressively expanded its operations and presence. Noteworthy events include its entry into the Greek market in 2011, and its partnership with Avaldsnes IL, a Norwegian Toppserien team, in 2021.

These expansions, coupled with its recognition with multiple awards such as the 2021 eGaming Review’s Best Customer Service Award, portray a pattern of sustained growth and innovation.

Market Development Strategy

Betsson’s strategic resilience has been evident in its expansion into various global markets, leveraging its subsidiaries such as Betsson Malta Ltd.

The company’s ability to navigate diverse regulatory landscapes and establish meaningful partnerships has led to steady revenue growth, with a reported €750+ million in 2022.

Identified Growth Opportunities

Given the expansive future outlook for the US gambling market, characterized by a projected revenue of $25.79 billion by 2030, Betsson stands to benefit from leveraging its diverse gaming services, such as online casinos, poker, bingo, and sports betting, to tap into this lucrative market.

Potential Market Entry

As of the latest data, Betsson has not announced formal intentions to expand into the US gambling market, as exemplified by its emphasis on the Italian market, as well as its recent partnership potential with Inter Milan.

Future Investment Speculation

Should Betsson consider entry into the US market, it has the potential to capitalize on the country’s growing online gambling sector, which is expected to contribute significantly to the global industry’s revenue, projected at around $19.1 billion in 2023.

Furthermore, the legalization of online gambling in several states and its projected 267% revenue increase from 2019 to 2023 demonstrate the immense growth opportunities within the US market.

Analyzing Betsson’s Potential Entry into the US Gambling Market

Having operated in the global gambling industry since its inception in 1963, Betsson has a legacy of strategic expansions. Notable milestones include entering the Greek market in 2011, expanding into the Latin American market in 2021.

Market Leader Status

Betsson has earned accolades such as the 2021 eGaming Review’s Best Customer Service Award, signifying its leadership position. Its subsidiaries, including Betsson Malta Ltd, have played crucial roles in its global expansion.

Comparative Market Analysis

The US gambling market is projected to achieve significant revenue of 25.79 𝑏𝑖𝑙𝑙𝑖𝑜𝑛 𝑏𝑦 2030, forecasting substantial growth opportunities. As of 2023, the global online gambling sector is expected to contribute an estimated 19.1 billion in revenue, with US online gambling experiencing a 267% revenue increase from 2019 to 2023.

Regulatory Landscape

Betsson’s potential entry into the US gambling market necessitates an understanding of the varying state regulations regarding online gambling. The evolving legal landscape, alongside the potential for federal legalization, presents both challenges and opportunities.

Operational Viability

A comprehensive operational feasibility study entails an in-depth analysis of Betsson’s capabilities to adapt and thrive in the dynamic US market. Factors such as customer acquisition costs, compliance, and infrastructure investment must all be thoroughly assessed.

Risk Mitigation Strategies

Potential risks associated with entering the US gambling market, such as legal uncertainties and competition from established players, must be diligently investigated. The formulation of risk management strategies is paramount to safeguarding Betsson’s interests.

Conclusion

Despite the immense potential for growth in the US gambling market, Betsson’s entry requires meticulous consideration. Its historical successes, market leader status, and capacity for expansion position the company favorably for potential entry. Thorough risk assessments and strategic alignment with market trends are vital to ensure that Betsson’s potential entry into the US gambling market is both reasonable and profitable.

While Betsson has forged a sterling reputation internationally, its potential penetration of the US gambling market is yet to be definitively confirmed.

However, given its historical expansion milestones, recognized strategic resilience, and the substantial growth potential in the US gambling sector, the future holds promising prospects for Betsson to explore and potentially carve a niche in the thriving US gambling market.

References

1. Betsson reports revenue and EBITDA rise despite FX hurdles
2. Betsson AB (publ) interim report January — March 2024
3. Betsson’s revenue soars by 22% to $1 billion in 2023