Betsson has announced the acquisition of  betFIRST, a leading sports betting and gaming operator based in Belgium. The acquisition, valued at a total of €120 million, with a possible earnout payment of up to €3 million, will be completed in cash.

Strategic partnerships

In addition to this acquisition, Betsson has also entered into a strategic partnership with Groupe Partouche, a well-established French casino operator, to offer online casino services in further regulated markets. The partnership aims to launch a joint online casino offering in Belgium in 2023, pending necessary licenses.

These strategic initiatives align with Betsson’s objective of achieving profitable growth and further expansion, with a focus on locally regulated markets in the long term.

betFIRST has strong branding

Founded in 2011, betFIRST has emerged as a prominent B2C operator in Belgium’s locally regulated online gaming market, specializing in sports betting and dice games. With a strong brand presence and a proven track record of customer acquisition and revenue growth, betFIRST holds licences for online sports betting and online dice games in Belgium. In addition to its online operations, the company operates around 450 points of sale in Belgium and owns a gaming arcade. In the last fiscal year, betFIRST generated net gaming revenue of €51.2 million and adjusted EBITDA of €10.0 million.

The partnership with Groupe Partouche combines Betsson’s expertise in the online gaming sector with land-based casinos. This collaboration aims to deliver an appealing online casino offering tailored for the local Belgian market.

Groupe Partouche operates land-based casinos

Groupe Partouche, which operates land-based casinos in France and Switzerland, holds an offline casino license in Belgium that can be expanded to include an online casino license. Pending approval from the Belgian regulator, the online casino offering is expected to launch in Belgium in 2023. Both Betsson and Groupe Partouche are committed to further develop their collaboration to explore additional opportunities.

The acquisition of betFIRST and the partnership with Groupe Partouche provide Betsson with valuable access to the competitive Belgian market, a diversified geographical presence, and an increased share of revenue from locally regulated markets. Betsson plans to continue operating betFIRST’s sports betting business while exploring potential synergies in the future.

Betsson’s scalable model for expansion

Pontus Lindwall, CEO and President of Betsson AB, expressed enthusiasm about entering the Belgian market and emphasized the strategic fit between the acquisition of betFIRST and Betsson’s growth strategy. Lindwall stated that Betsson’s scalable business model, coupled with these initiatives, will drive revenue growth and enhance profitability over time.

Betsson is well-equipped to finance the acquisition using its existing cash reserves and credit facilities. The completion of the betFIRST acquisition is expected to take place around July 5, 2023.

Betsson has retained Lazard as its financial advisor and Gernandt & Danielsson, along with Van Bael & Bellis and Edson as legal advisors in Belgium, to assist with the acquisition process.

 

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