Betsson acquires Europe-Bet for $50 million
Swedish online gambling group Betsson has announced it will acquire Georgia-based Europe-Bet for $50 million.
The company said today it would pay an additional $35 million over 12 months if gambling regulations in the Caucasian country remain favorable.
Betsson CEO and President Magnus Silfverberg said the move will strengthen the company's strategic position in the region.
The deal immediately makes Betsson the second-largest operator in Georgia, with 30% market share, behind Adjarbet.
In 2014, Europe-bet, which offers online and land-based sports betting as well as online poker and casino, reported revenue of $52.4 million, of which $40.8 million (nearly 78%) came from the online business.
New Growth Base
Europe-bet's online revenue comes primarily from sports betting, which accounts for 44% of total revenue, but the company is also heavily involved in online poker and casino businesses based on the groundbreaking Connective Games platform.
As of this writing, Europe-bet’s poker platform is ranked as the 19th largest poker platform in the world by PokerScout.
Europe-bet recently partnered with the World Poker Tour and secured exclusive licensing rights for WPT products and services in Georgia.
The agreement allows Europe-Bet.com to host three WPT events this year, two domestic circuits and one Main Event circuit, the first of which begins in Tbilisi in early June.
Europe-bet reserves the right to distribute television programs and merchandise.
“Europe-Bet has built a strong brand with a competitive, diverse product offering in the local regulated market in Georgia,” said Silfverberg. “Together with Betsson’s technology, we will set the stage for profitable and sustainable growth in Georgia and beyond.” Base."
Rapidly developing market
Georgia has become an increasingly developed market in recent years, with gambling contributing significantly to government revenue.
Since 2011, it has experienced tremendous growth; by 2013, the total revenue of Georgian gaming operators was 40 times higher than in 2006.
As many as 100 companies are active in the gambling business in the country, 32 of which are considered "large companies." According to the Georgia State Bureau of Statistics, a total of 5,046 people were employed in the gambling industry in 2013, accounting for approximately 0.3% of the employed population.
Betsson will take over the company from a group of entrepreneurs, some of whom will continue to hold strategic positions under the agreement.
The Swedish company announced that it will fund the acquisition through the renewal of an existing $39 million revolving credit facility and a new $84 million revolving credit facility.
The acquisition is expected to close in July.
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Source: www.casino.org
