The risk of regulatory changes is part and parcel of both emerging and established markets. However, despite being largely out of the control of industry stakeholders, more must be done to educate lawmakers, according to Betsson’s CEO Pontus Lindwall.
Speaking to the iGaming Daily podcast following the release of his company’s Q1 results, Lindwall reflected on the growing trend of increasingly onerous regulation on the gaming industry.
He said: “We cannot decide in which ways the regulators want to move or what kind of potential limitations they want to put on the products.
“What we can do is try to inform politicians and regulators about the consequences of certain measures when it comes to tax levels and limitations on the product. We have seen that many countries have actually failed with their gaming regulation because they have been too harsh in the way they have formed the regulations.
“We need to stay close to the regulators, and one of the most important things we need to do is to explain to the regulator that we are on the same team because [the regulators] want the regulated industry, and we want to be in the regulated industry. So we have the same common interest, and that is to make the regulated part of the industry successful.”
Betsson is now operational in 25 different jurisdictions, and one of the most important for the company is the newly regulated Brazilian market.
Representing the most populous region of Latin America, operators and suppliers have flocked to the jurisdiction, however, the debate surrounding regulation in the country continues to rage on.
More specifically, the Brazilian Senate has heard opposing views on whether to proceed with further legislation of gambling advertising as part of the regulated betting regime.
At present, the Brazilian Bets regime applies ‘fixed measures’ on gambling advertising, including the requirement for responsible gambling messaging. Additionally, advertisements cannot target minors or use certain public figures.
However, the Senate’s Sports Committee are considering two separate bills on the matter. The first calls for an outright ban on advertising, while the second seeks to prohibit gambling advertisements involving athletes, celebrities, sports teams and influencers.
Reflecting on the potential for change, Lindwall emphasised that advertising is crucial to ensure that players are aware of those present in the regulated market.
“It’s not a sustainable way to create gaming regulation that doesn’t allow operators to market themselves or communicate to the market,” he explained. “So again, there is this element of education that we need to do. We need to be able to communicate with the clients.”
Cash rich
Betsson’s Q1 results were headlined by an 18% year-on-year increase in group revenue to €248.2m, and an additional net income of €48.4m (Q1 2024: €42.8m).
The group also reported a 73% uptick in operating cash flow to €86.4m, a position Lindwall noted sets up Betsson to take advantage of M&A opportunities throughout 2025.
“It’s a very strong cash position that we have,” he said. “M&A is a big part of our growth strategy, but M&A doesn’t happen on a weekly or monthly basis. It happens when it happens, when we get good opportunities. We are well geared to do M&A, but we’re not going to run ahead and just buy anything. We will wait for good opportunities.”
