Betsson reveals multiple UK brand closures after "significant changes" to regulatory environment
Malta-headquartered operator surrenders three licences to UKGC and shutters eight UK-facing brands
Betsson Group will reduce its UK footprint from nine brands to one due to the market’s “unsustainable” regulatory environment.
The Malta-headquartered operator revealed it would consolidate all existing UK operations with sole focus on the Rizk brand, which was acquired from GiG in April 2020 as part of a €33m deal.
“This initiative will increase efficiency and have a positive impact on the contribution from UK business,” said Betsson. “It will also enable resources to be reallocated for profitable growth in other markets.”
Betsson has historically operated with nine brands on three different platforms under four different licences in the UK market.
Eight brands, including the flagship Betsson brand, will be closed with effect from 21 October with no further deposits or bets accepted.
Betsson said all customers will be contacted with deposits repaid and outstanding bets paid out as winners.
As part of the reshuffle, Betsson confirmed that three of the operator’s four UK licences will be surrendered to the UK Gambling Commission (UKGC).
One of the licences was already under review with the UKGC.
The remaining active licence powers Rizk, Kaboo, and Guts – three brands purchased from GiG. Kaboo and Guts will close in the UK before the end of 2020.
It is understood that the eight brands departing the UK will be retained in the operator’s portfolio for use in other markets across Europe.
“The UK regulatory framework has undergone significant changes in the past few years, requiring extensive investments both in technology, regulatory compliance and marketing, which is not sustainable with the group’s current UK setup,” Betsson said.
Betsson has continuously reduced its UK footprint over the last two years after closing its UK office in December 2018.
The operator’s UK market share is relatively small with revenue currently representing approximately 3% of total.
Betsson CCO Ronni Hartvig said: “We’re doing this to be more efficient in the UK market. In line with one of our company values, Fair Play, we have made sure that this will not have any negative impact on our customers, so much so that we’re paying out all open bets as winning bets.”