Leading betting and gaming firm Betsson Group has decided to withdraw all but one license from the UK gaming market. The group will operate under the Rizk brand moving forward.
Betsson Group Suspends Eight Brands in the UK Effective Immediately
Betsson Group is moving forward with an ambitious plan to consolidate its gaming business in the United Kingdom under a single brand, citing regulatory uncertainty as the reason behind the decision, and a focus on the US sports betting market and Europe in general.
The Malta-based company will now only focus on the Rizk brand which it acquired back in April from GiG in what was a €33 million deal, closing all eight other brands it currently operates in the market effective immediately.
Betsson feels confident that the decision would help the company boosts its efficiency in the market and derive better results from the UK market.
Similarly, focusing the company’s efforts on a single brand will free up resources to use in other markets where Betsson is interested in expanding. This is a big shake-up for Betsson which has run nine brands under four different licenses in the United Kingdom for years, establishing itself as a bid player in the market.
Effective today, October 21, Betsson is closing eight brands but Rizk and, as a result, deposits and bets will no longer be accepted. Betsson has confirmed that any account balances and outstanding bets will be paid to players and winners.
In addition, the company will withdraw three of its four licenses it currently holds with the UK Gambling Commission (UKGC), including one of its licenses which is already pending a review by the commission.
While the brands will stop operating in the UK, they will remain the intellectual property of Betsson Group which may use them to launch operations across other European markets. Elsewhere, Betsson has been actively extending its partnerships, including a recent deal with Yggdrasil.
New Regulation Asks for ‘Unsustainable Investment’
Commenting with some specificity on the reasons behind the decision, Betsson explained that the new regulatory requirements demand high expenditure to cover extensive technological, compliance, marketing and regulatory standards that isn’t entirely sustainable for the company and its UK business at the moment.
Betsson Group, though, remains ready to comply with any new laws and recommendations issued by regulators and authorities in the market. The company has been already reducing its footprint in the country for the past two years, closing offices back in December 2018.
While Betsson has good visibility in the United Kingdom, the group generates only 3% of its revenue in the market, making the departure easier on the financial side.