Betsson Group adopts one brand UK focus in business consolidation

Betsson Group has cited relatively small market share and unsustainable changes to regulatory frameworks as prime reasons in announcing a UK business consolidation. 

This will see three of the group’s four licences, one of which was under review, be handed back to the UK Gambling Commission, as the firm focuses its attention on the Rizk online casino and sports betting brand.

The eight UK-facing brands under the returned licences will be closed with effect from today, with no further deposits or bets accepted. The customers of these brands will be contacted accordingly, with all deposits to be repaid and all outstanding bets paid out as winners.  

Betsson, which has to date operated with nine brands, on three different platforms, and under four licences in the UK market, has been reducing its business across the region for the last few years, including closing its UK office at the end of 2018.

It’s hoped that the one brand strategy will increase efficiency and have a positive impact on the contribution from its business in the region, as well as enabling resources to be reallocated for profitable growth in other markets. 

The other eight brands will be retained in the group’s portfolio for use in other global jurisdictions, and therefore there will be no need for write-down of goodwill or trademark.  

Offering further information regarding the business consolidation, the group explained in a media release: “Betsson’s market share in the UK is relatively small with revenues currently representing approximately three per cent of the group’s revenue. 

“The UK regulatory framework has undergone significant changes in the past few years, requiring extensive investments both in technology, regulatory compliance as well as marketing, which is not sustainable with the group’s current UK setup. 

“Three of the group’s four licences will therefore be handed back to the UK Gambling Commission with immediate effect. One of these licences was under review with the UKGC.”