Swedish betting operator Betsson AB has snapped up horse betting operator RaceBets.
The horse betting operator, which offers more than 250,000 different races yearly, holds licenses in the United Kingdom, Ireland, Malta and Germany. According to RaceBets, three-quarters of the company’s revenue come from “locally regulated markets” such as Germany and UK, “making it a good strategic fit for Betsson.”
The European horse betting market is estimated to be at €3.5 billion, making it one of the most popular betting sports in the region.
“Horse racing is important in many of our markets and the key rationale of the acquisition of RaceBets is to enable our subsidiaries to accelerate the launch of a world-class horse racing product on all core brands,” said Ulrik Bengtsson, CEO and president of Betsson AB, in a statement.
RaceBets revenue reached €9.3 million in 2015, while adjusted Ebit was €3.36 million. The company’s annual growth rate for 2013-2015 was at 12 per cent.
The Swedish betting operator, on the other hand, posted healthy revenue and earnings gains in the third quarter of 2016—after a dismal Q2 performance. Betsson’s mainstay online casino revenue jumped 11% to just under SEK 732 million while sportsbook revenue rose 9% to SEK300 million. Mobile’s share of the revenue pie grew 55% to SEK504 million, representing 47% of the total.
Revenue growth was strongest in Betsson’s core Nordic markets, which showed a 22% year-on-year improvement, primarily as a result of a strong performance in Nordic sports betting, which saw revenue rise more than two-thirds year-on-year.
Betsson is expecting that trading in the first few weeks of Q4 will be below Q3’s average revenue but in line with Q4 2015. The company says operating expenses will be slightly higher in Q4 due to increased marketing efforts.
The Betsson-RaceBets deal is expected to be concluded in the beginning of 2017 and is subject to regulatory approval.