Betsson considers B2B deals with proprietary sports tech

Betsson is looking at new ways to make the most of its proprietary sportsbook technology, including potential B2B deals, according to Betsson CEO Pontus Lindwall.

Speaking on an investor call after the firm’s Q2 results on Friday, Lindwall was asked about B2B opportunities for the tech after the sportsbook vertical enjoyed 17% growth in revenues for Q2 and 7% growth in turnover.

“There is definitely demand from the end user for our product, and as traction is good we also get entreaties from operators, so there is an opportunity to go B2B with the sportsbook,” Lindwall said.

“No decisions have been made yet, but we’re working on the product in a way that makes it possible for us to offer it as a B2B product,” Lindwall added.

The vertical accounted for 27% of group revenue in Q2, a new high for the firm after making several improvements to the product including a broadening of the markets offered.

“The product has made great progress,” Lindwall added.

A slide from Betsson’s Q2 earnings presentation

Elsewhere on the call, the exec was also pressed by analysts on Betsson’s approach in Holland, where it could be delayed getting a licence for up to 12 months after its competitors due to a cooling off period.

However Lindwall dismissed those concerns, saying it was not his understanding that Betsson would be locked out the market for that long and that it was too early to make firm conclusions.

In related Betsson news, it emerged last week the operator has acquired a 1.8% stake in beleaguered rival Global Gaming.

The transaction is thought to be worth around £300,000, but prompted some confusion among Sweden’s investor community as to the strategic rationale behind the purchase.

“The deal was too small to be done for financial reasons, and if strategic, why only buy 1.8%?” asked one Stockholm analyst. “They would surely have been aware the stock would rally when ownership data was announced and they were revealed as a buyer.”

Global Gaming’s share price jumped from SEK 4.6 to SEK 7.3 when the ownership data was revealed on Tuesday last week.

Global Gaming share price

Analyst firm Redeye said the purchase was “only the start,” and it expected Betsson to acquire additional shares in July.

“The question is whether the acquisition is offensive or defensive,” Redeye said.

“If Betsson had wanted to make a clean deal and acquire the whole company, it would have done so by initiating negotiations with the company and the largest owners. This would then be followed by a public offering once the largest owners would agree on the terms.

“So why have Betsson not done that? Either the largest owners and Betsson could not reach an agreement on a reasonable price level, leaving Betsson with the option to buy shares over the market, or Betsson wants to take a share of more than 10%, to prevent competitors from acquiring the company.”

Redeye said either way the deal was a “win-win” for Betsson. The operator declined to comment.