Betsson CEO: We'll be number one in the Netherlands
Magnus Silfverberg claims acquisition of Oranje and Kroon brands puts firm in pole position in soon-to-be regulated market
Betsson’s acquisition of Netherlands-facing casino brands Oranje and Kroon will place the operator at the forefront of a re-regulated Dutch market, according to chief executive Magnus Silfverberg (pictured).
Speaking to eGaming Review, Silfverberg said that the agreement, which was finalised in the early hours of Friday morning ahead of the announcement of operator’s full-year results, was a strategic play in a country he views as having “tremendous potential”.
The 130m deal with parent company Class One Holdings comes ahead a re-regulated Dutch market in 2015, with Betsson plotting to develop the two already high-profile brands under a newly liberalised framework.
“We had been looking at the Dutch market and how to enter for a while and this opportunity came up and we thought it was extremely interesting and we were very happy when we realised they were willing to sell,” Silfverberg said.
“We knew this company and it has a really strong brand in the Netherlands and it will give us a very good position in the market “ I think we will be market leader, or at least top two, when it comes to the re-regulation of the market.
“I think there’s huge potential for growth in the Dutch market,” he adds. “It’s one of the most under penetrated markets in terms of online gaming in relation to the maturity that it should have because of general ecommerce opportunities, therefore it has tremendous potential.”
One of the reasons the deal was made possible was the expected increased costs associated with operating in a newly regulated market.
“I think all companies will really need to invest when the market re-regulates, firstly in marketing and technology and then in marketing, so that is of course is a factor for any smaller company to consider if a market is reregulating and I think it was the case in this instance,” Silfverberg said.
Oranje and Kroon are both casino-only brands, however, Silfverberg hinted this may change with the possibility of adding sportsbook and poker to their offer.
The also deal gives Betsson greater geographical balance with the percentage of Nordic income being reduced from 85% to 75% as it looks to increase its western European-derived revenues.
The acquisition comes shortly after the opening of Betsson’s new Malta headquarters. Dubbed the Betsson Experience Centre, the offices, which opened on the 30 January, will enable the operator to increase staff numbers from 600 to 750 and comes as a result of what Silvferberg described as “substantial investment”.