Pontus Lindwall to stay on as Betsson AB CEO as board performs U-turn

Pontus Lindwall’s forthcoming departure as Betsson AB CEO has been annulled by the firm following significant pressure from major shareholders.

In a statement, the Betsson board of directors confirmed it had reversed its prior decision to better equip the business in dealing with priorities including US strategy and how to mitigate its exit from the Dutch market.

In September, Betsson ceased accepting Dutch customers on its international websites to boost the operator’s long-term chances of gaining a Dutch licence, something which is set to cost the firm SEK25m (£2.1m) from Q4 2021.

Betsson’s US progress has been slow, with the firm currently only active in the state of Colorado, while primarily pursuing a B2B sportsbook strategy in the country.

Newly appointed Betsson AB chairman Johan Lundberg cited the need to walk the firm back from its decision to show Lindwall the exit door in order to address these issues.

“We have had several discussions with Betsson’s main stakeholders, the Betsson management team, Betsson employees, as well as many of the largest shareholders,” Lundberg explained.

“Based on those discussions, the current board does not believe that it would be good to change leadership now.

“The company needs to focus on the all-important work that lays ahead, such as for example the unexpected Dutch situation,” the Betsson AB chairman added.

Meanwhile at Betsson. Live stream of Pontus Lindwall. pic.twitter.com/1AGnOq9wNX

— Mikael Pawlo (@mpawlo) October 25, 2021

Originally appointed CEO of Betsson AB in 1998, Lindwall advanced to the position of chairman in 2011, but later returned to the CEO role in 2017 following the departure of Ulrik Bengtsson.

Upon his return, Lindwall was tasked with overseeing the implementation of the operator’s “Back on Track” strategic programme, which has successfully returned Betsson to profitability.

The strategy saw an increased focus on product and tech development and the launch of Betsson’s B2B sportsbook department, as well as promoting efficiency in marketing and the firm’s internal processes.

This process also saw Betsson withdraw its portfolio of brands from the UK due to regulatory strain and the increasing costs of compliance in the country.

News of Lindwall’s exit shocked the sector in September after the business reported record Q2 financials.

At the time, Betsson’s board of directors said it was looking for the “next generation of international leader” to spearhead a new direction for the firm.

However, in the days that followed, Patrick Svensk resigned as Betsson AB chairman, citing a loss of trust and confidence from major shareholders over the handling of Lindwall’s dismissal, which will now never materialise.

It is understood the board acted alone in showing Lindwall the exit door and without the backing of the operator’s owners and key shareholders.

In forcing Svensk to resign, major shareholders Hamberg Management Limited AB, Svea Ekonomi, the Hamberg, Boyer and Kling families and Berit Lindwall, the mother of outgoing Betsson AB CEO Pontus Lindwall, called for an extraordinary general meeting (EGM) which took place today (25 October).

At the meeting, shareholders have confirmed the re-election of current Betsson AB board members Jan Nord, Fredrik Carlsson and Eva Leach, as well as the election of Lundberg to the role of chairman.

In a separate proposal made by the major shareholder group which has also been approved,  Pontus Lindwall and Peter Hamberg have been elected as Betsson AB board members,

The ratified proposal also incudes the exclusion of newly nominated chairman Lundberg from the board’s nomination committee.

Betsson is scheduled to report its Q3 financial results on 26 October.