Betsson is entering the US online sports betting market by signing an agreement with its partner Dostal Alley Casino, which will provide market access for B2C online sports betting in Colorado. Betsson plans to launch its proprietary sportsbook in the first part of 2021, after regulatory approval.
The agreement is for an initial term of 10 years. The company said in a release that the deal marks a strategic move reflecting its drive to grow in new regulated markets: “This new market entry reflects Betsson's general business strategy of prudence where the aim is to grow in a financially safe manner, with low risk, ensuring a long term sustainable and growing business.”
Betsson said it seeks to build US presence, initially with a small office in Colorado, showcase the strength of its sportsbook in the US market, and sell its proprietary sportsbook to B2B customers in the future.
Colorado was the 18th state in the US to legalise online sports betting effective from 1 May this year, allowing 33 licences, each to include one so-called ‘skin'. Gambling duty is 10% on Gross Gaming Revenue and customers are allowed to register and bet online while within the state borders.
The online sports betting market in Colorado is estimated to reach approximately $200 million at saturation, according to H2GC. Colorado is a wealthy state in the top-third of the US states by GDP with nearly six million inhabitants and growing. It is both a tech and sports hub with its own teams in major American sporting leagues.
CinDee Spellman, CFO of Dostal Alley Casino commented: "As a company with over 28 years in the gaming business, we are thrilled to welcome Betsson to the US as we partner with them for online sports betting in Colorado. With their decades of experience in online gaming, we are confident that they will bring the very best experience to players in the Centennial State!"
Pontus Lindwall, CEO and President of Betsson AB said: "I am very excited to reach this milestone, further expanding Betsson's global reach by entering a new continent through the fast-growing online market in the US. Dostal Alley Casino has more than 60 years of experience of doing business in Colorado and will play an important role in our journey to build US presence."
"The whole country has a strong culture of gambling and is now experiencing online penetration at accelerated pace, where consumers are transitioning from traditional retail outlets to also now bet on their mobile devices. We have followed the development in the US closely since the possibility of a repeal of the PASPA and have carefully considered ways to enter the market. We are now looking forward to exploring the potential with our proprietary sportsbook," Lindwall concluded.