Swedish online gambling firm Betsson has revealed its ambitions to enter the US online sports betting market this week with news of an agreement with Colorado-based partner Dostal Alley Casino.
The latter will provide market access for business-to-consumer (B2C) online sports betting in the US state of Colorado where Betsson will establish a small office.
According to the company, which plans to launch its proprietary sportsbook in the first part of 2021 pending regulatory approval, the deal marks a strategic move reflecting its drive to grow in new regulated markets.
The 10-year agreement is, said Betsson, a first and cautious step into the US market, designed to benefit the company with key learnings, brand presence and initial customers. In a statement, it added that the new market entry reflects its general business strategy of “…prudence where the aim is to grow in a financially safe manner, with low risk, ensuring a long term sustainable and growing business”.
Colorado was the 18th state in the US to legalize online sports betting effective from May 1 this year, allowing 33 licences, each to include one skin. Gambling duty is 10% on GGR and customers are allowed to register and bet online while within the state borders. The online sports betting market in Colorado is estimated to reach approximately $200m at saturation.
CinDee Spellman, CFO of Dostal Alley Casino stated: “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.”
Pontus Lindwall, CEO and President of Betsson AB said: “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.
“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.”