Betsson is Leaving the US Sports Betting Market

Details: Category: Gambling Industry; Created: Tuesday, 03 September 2024 18:44

Betsson, is a leading online gambling company that is better known in the U.S. as the parent company of Betsafe. The Swedish gaming company first came to the U.S. sports betting market in 2022 by opening up shop in Colorado. However, 2 years later they are calling it quit as Betsson is Leaving the US Sports Betting Market.

According to a statement by the Betsson Group, they will be stopping their B2C operation in the U.S. at the end of September 2024.

The operator first introduced its mobile sportsbook application in the United States, specifically in Colorado, under the Betsafe brand in collaboration with Dostal Alley Casino. However, it is now preparing to withdraw from the market.

Upon its launch, Betsson described the sportsbook app as “a significant element of the company’s B2B strategy in the nation.” Although the Betsafe application was designed for consumers, a significant aspect of its launch was to demonstrate the company's capabilities as a B2B provider within the North American market.

"We recognized our strengths as a major operator and understood the requirements for entering this market. Initially, we considered entering as Betsson, but soon realized that approach would be prohibitively expensive. Consequently, we determined that our primary objective was to introduce our technology here for the benefit of other partners and providers," stated Lance Agostino, Betsson U.S. Account Director, during an interview with SBC Americas at the time of the launch.

For those that want to learn how to be a bookie and are looking for a betting software, Betsson is not a bad option. After a decent run in Colorado, the company has made their point.

Betsson is Leaving the US Sports Betting Market but will Continue to Operate in Canada

Notwithstanding this development, Betsson maintains its foothold in North America, having introduced Betsafe in Ontario, Canada, in February of the previous year, offering a variety of B2C services, including sports betting and an online casino.

A representative from Betsson Group stated, “Betsson has made the decision to cease its B2C operations in Colorado (USA) by the end of September 2024. Consequently, we will not provide any B2C services in the United States for the foreseeable future.”

“As previously indicated, our B2C activities in Colorado were primarily intended to showcase our sportsbook for B2B purposes and to gain valuable insights into the dynamics of the US online sports betting landscape.”

In other corporate news, Betsson has entered into a multi-year global betting sponsorship agreement with Premier Padel, aimed at enhancing the fan experience during the Qatar Airways Premier Padel Tour.

Sportsbook Closing their Doors is Becoming a Trend in the US Sports Betting Market

As the NFL season approaches, Betsson has become the most recent smaller operator to cease its operations in the United States. Just last week, the Australian company ClutchBet revealed its decision to shut down the BlueBet brand in Colorado, Louisiana, and Iowa. Additionally, Superbook has declared its intention to exit Colorado and all other markets except for Nevada.

Other operators that have also withdrawn from Colorado include WynnBet, Fubo Sportsbook, Unibet Sportsbook, and Betway. There are several reasons for this shift in sportsbook which stems from a competitive market to heavy betting taxes. Furthermore, operating a sportsbook is not cheap unless you use a pay per head as the core of the operation.

About the Betsson Group

According to sportsbook reviews, Betsson was established in 1963 under the name AB Restaurang Rouletter in Sweden by Bill Lindwall and Rolf Lundström. Later on, the company rebranded as Cherryföretagen AB. In 2000, the organization ventured into the online gaming market by acquiring Betsson, However, it was not until 2006, that it officially adopted the name Betsson.

The company is publicly traded as Betsson AB on Nasdaq Stockholm, reporting a revenue of €777 million and an operating income of €131 million for the year 2022. It operates a subsidiary, Betsson Malta Ltd, and employs approximately 1,800 staff members, focusing on various gaming platforms such as betFIRST, Betsafe, and NordicBet.

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