Betsson has taken aim at the Dutch gambling regulator Kansspelautoriteit (KSA) after announcing it will no longer proceed with its planned acquisition of Holland Gaming Technology and Holland Power Gaming.
The company cited a lack of responsiveness from the KSA as the reason for the deal falling through.
Accelerating its European M&A strategy in February last year, Betsson reported that it had agreed to acquire the Dutch-licensed gaming operator and its casino games development studio.
The total consideration for the deal was €27.5m on a cash-and-debt-free basis, and it was to be financed with the company’s liquid assets, subject to the approval of the KSA.
However, in a statement on its website this week, Betsson noted that no such approval was received from the regulator, so it has opted not to proceed with the transaction.
“The agreement to acquire Holland Gaming Technology Ltd and Holland Power Gaming BV was announced by Betsson through a press release on 19 February 2024,” stated the operator.
“As stated in the press release, the completion of the acquisition was subject to approval by the Dutch Gambling Authority. Since the Dutch Gambling Authority has not issued a decision by the agreed long-stop date, Betsson has decided to unwind the transaction.
“Therefore, the transaction will be reversed by Betsson, returning Holland Gaming Technology Ltd and Holland Power Gaming BV to the sellers and the purchase price, less a break fee, will be repaid to Betsson (meaning that a total of €26.7m is to be repaid). The unwinding of the acquisition will not have any notable effect on the Group’s consolidated income statement.”
Past delays and M&A future
The acquisition of Holland Gaming Technology and Holland Power Gaming was to be Betsson’s reentry into the Netherlands’ gambling market, following the operator’s withdrawal of its licence application for the region in Q2 2023 due to “significant delays” in the approval process, as well as resource allocation considerations.
At the time of this withdrawal, Betsson stated that it may reapply for a licence again in the future. Whether that is still the case following its decision not to proceed with the Holland Gaming Technology acquisition remains to be seen.
However, further M&A opportunities could be on the horizon, as CEO Pontus Lindwall noted that Betsson’s operating cash flow position of €86.4m at the end of Q1 2025 puts the operator in a “very strong cash position”.
Lindwall 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.”
Betsson is scheduled to publish its financial results for Q2 2025 on 18 July.
