Betsson to focus on Rizk after closing eight UK-facing brands21st October 2020 1:38 pm GMT
Stockholm-listed betting and gaming operator Betsson has further consolidated its UK business with the closure of eight UK-facing brands.
Betsson has been reducing its business in the UK for the past few years, including closing its UK office at the end of 2018.
To date, the company has operated with nine brands in the UK on three different platforms and under four licences. Betsson's market share in the UK has been relatively small however, with revenue currently representing approximately 3 per cent of group revenue.
As part of its strategy, Betsson has decided to further consolidate its UK business to focus on growing one single brand, Rizk. Three of Betsson’s four licences will be handed back to the UK Gambling Commission (UKGC), with one of these licences currently under review by the UK regulator.
“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,” said Betsson.
As a result, the operator’s eight other UK-facing brands have been shut down with immediate effect, including Betsafe, SuperCasino and LiveRoulette among others. Betsson said that all deposits will be repaid, and all outstanding bets will be paid out as winning bets.
“This initiative will increase efficiency and have a positive impact on the contribution from its UK business,” added Betsson. “It will also enable resources to be reallocated for profitable growth in other markets."
The eight brands will be retained in the group's portfolio for use in other markets.
Shares in Betsson AB (STO:BETS_B) were trading down 2.64 per cent at SEK70.00 per share in Stockholm Wednesday following the announcement.