Betsson is the latest European company to launch a sports betting app in the US via Colorado.
According to the news release, Betsson plans to launch its proprietary sportsbook in early 2021. The partnership is subject to required regulatory approvals by the Colorado Limited Gaming Control Commission.
The agreement between Betsson and Dostal Alley is for a 10-year market access deal.
Betsson CEO and President Pontus Lindwall said in the release:
“I am very excited to reach this milestone, further expanding Betsson’s global reach by entering a new continent through the fast-growing online market in the US. Dostal Alley Casino has more than 60 years of experience of doing business in Colorado and will play an important role in our journey to build US presence.”
Strategic move by Betsson for future expansion
As the press release notes, this strategic move will provide Betsson access to the rapidly growing US sports bettingmarket. Most importantly, it does this in a Colorado market where the needle is pointing up, as the $25.5 million handle for May shows.
Furthermore, the press release adds that this initiative is a first and cautious step into the US market. The launch in Colorado will give Betsson key learnings, initial brand presence, and a customer base.
As Lindwall said:
“The whole country has a strong culture of gambling and is now experiencing online penetration at accelerated pace, where consumers are transitioning from traditional retail outlets to also now bet on their mobile devices. We have followed the development in the US closely since the possibility of a repeal of the PASPA and have carefully considered ways to enter the market. We are now looking forward to exploring the potential with our proprietary sportsbook.”
Ambitious plans on the horizon for Betsson
This move also supports Betsson’s ambition to test and sell its proprietary sportsbook to B2B customers in the US, according to the press release.
As Legal Sports Report notes, Betsson is one of the largest online gambling operators in Europe, with around $550 million in annual revenue. Nearly three-quarters of its revenue comes from casinos and one-quarter from sportsbooks.
Dostal Alley CFO CinDee Spellman said in the press release:
“As a company with over 28 years in the gaming business, we are thrilled to welcome Betsson to the US as we partner with them for online sports betting in Colorado. With their decades of experience in online gaming, we are confident that they will bring the very best experience to players in the Centennial State.”
Previously, the most recent European company to announce plans to launch a sports betting app in the US via Colorado was Carousel Group. Its deal with Johnny Nolon’s Casino in Cripple Creek was announced in May.