Betsson Forfeits $30M Holland Gaming Acquisitions to Pursue Other Opportunities

Online casino and sports betting giant Betsson announced that it has given up on its Dutch ambitions for now due to delayed regulatory approvals. After over a year in limbo, the deal to acquire Holland Gaming Technology and Holland Power Gaming seems to have fallen through.

History Repeating for Betsson

On February 19, 2024, Betsson announced its re-entry into the Dutch market via the acquisition of Holland Gaming Technology and Holland Power Gaming for approximately $30 million. Betsson’s ultimate goal was to leverage these acquisitions to return to the Netherlands following its exit a few years earlier.

Betsson had to pull out of the Netherlands in 2021 due to its re-regulation, resulting in a significant financial setback for the company. Betsson was quick to apply for a license, hoping to return soon. Unfortunately, the licensing process resulted in significant delays and turned out to be very costly. Because of that, Betsson eventually gave up and withdrew its application to pursue attractive opportunities in other markets.

Several months later, however, Betsson unveiled its planned acquisition of Holland Gaming Technology and Holland Power Gaming, which would have allowed it to re-enter the Netherlands.

Now, though, this deal seems to be off the table too.

Betsson Forfeited Its Acquisition Due to Regulatory Delays

In its official announcement, Betsson confirmed that it has terminated the agreement to acquire Holland Gaming Technology and Holland Power Gaming. The company justified its decision with the lengthy regulatory delays, explaining that the Dutch Gambling Authority (Kansspelautoriteit/KSA) had not yet reached a decision.

The completion of the acquisition was subject to approval by the Dutch Gambling Authority. Since the Dutch Gambling Authority has not issued a decision by the agreed long-stop date, Betsson has decided to unwind the transaction.

Betsson statement

As a result, the transaction will be reversed, resulting in Betsson returning Holland Gaming Technology and Holland Power Gaming. The purchase price, less a break fee, will be repaid to Betsson, meaning that the company will receive EUR 26.7 million ($30.4 million, current conversion rates) back.

Betsson said that the unwinding of the acquisition is not expected to affect the group’s guidance. In the meantime, the company will pursue other business opportunities.

At the end of April, Betsson posted its Q1 report, outlining a year-on-year growth of 18.3%. The company attributed the favorable result to its rapid growth in Latin America.