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Betsson Begins UK Exit

by Glenn Baird - October 21, 2020

As the UK stumbles its way out of Europe, Betsson, one of the continent’s leading gambling brands, is heading in the opposite direction.

Betsson are a Swedish operator that has been established in the UK for many years now. As increased demands are placed on operators in the UK, Betsson now see the market as non-profitable.

Up until recently Betsson oversaw 9 different brands in the UK, but an announcement today has confirmed that of those 9, only Rizk will remain trading in the country.

Since 2018 Betsson has pushed ahead with their march out of the UK market, having terminated its NetPlay TV subsidiary and closing down its offices in London.

The latest withdrawal appears to a part of long-term strategy, establishing the lack of profibilty for online operators in the UK.

“This initiative will increase efficiency and have a positive impact on the contribution from its UK business,” Betsson detailed in its corporate filing.

“It will also enable 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 markets and therefore there will be no need for write down of goodwill or trademark.”

Betsson points the finger at increased regulatory measures in the UK, including the need for investment in certain technologies and compliances.

The result of this is that Betsson will be leaving the UK market immediately. Brands such as Betsafe UK, CasinoEuro, RaceBets, Jackpot24/7 and SuperCasino will all terminate their operations in the UK, with the only remnants of Betsson being the Rizk.com domain.

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

“The operator group expressed its hope that pursuing a 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.”

Those regulations and the unknown impact of Brexit could signal a mass exodus from the UK market from brands who cannot afford to meet the standards required in the country.

The United Kingdom of Great Britain and Northern Ireland sits to the north-west of mainland Europe. The United Kingdom shares a border with The Republic of Ireland and has coasts on the Atlantic Ocean, Celtic Sea, North Sea, Irish Sea and English Channel. The population of the UK is approaching the 67.6 million mark leading to a fairly densely populated land mass. The gambling sector in the United Kingdom is entirely regulated and licensed by the UKGC – the United Kingdom Gambling Commission. Should players resident In the UK wish to gamble with foreign based operators there is no history of this being treated as a criminal offence, but high levels of protection exist for UK residents playing with UK licensed operators.

Disclaimer:

The above information is what we believe to be the the legal status of online gambling, however information on this topic is limited and hard to find. We accept no liability for any errors or ommissions. It is the reader’s responsibility to ensure that they know the legality of online gambling in their country before engaging with any online gambling service.