Betsson has announced its decision to shut down its business-to-consumer (B2C) operations in Colorado by the end of September 2024, signaling the end of its direct consumer engagement in the U.S. market for the foreseeable future. This decision was reportedly confirmed by a company spokesperson to NEXT.io, marking a significant shift in Betsson’s strategy within the United States.

Strategic shift and operational background:

Launched under the Betsafe brand in the spring of 2023 through a partnership with Dostal Alley Casino, Betsson’s mobile sportsbook platform initially aimed to make a mark in the U.S. Additionally, Betsson had established an office in downtown Denver which, while managing the B2C operations, predominantly supported the company’s business-to-business (B2B) activities in the region.

The spokesperson elaborated on the initial purpose of their Colorado operations, stating, “As communicated initially, our B2C operations in Colorado served primarily to display our sportsbook for B2B purposes and to provide us with valuable first-hand insights into the dynamics of the US online sports betting market.”

As NEXT.io reports, Betsson’s CEO, Pontus Lindwall, shed light on the company’s strategic direction earlier in the year during an interview with news agency. Addressing comparisons with competitors like Kindred Group who have exited the U.S. market, Lindwall highlighted Betsson’s unique position. “The situation is different because we, unlike Kindred, only went to the US with a B2B offering. We are already supplying our sportsbook to many other markets, and it’s the same product that we use successfully elsewhere,” he explained.

Lindwall further emphasized the non-reliance on the U.S. market and the company’s broader strategy, “Every euro we invest in that sportsbook benefits us and our partners. We’re not dependent on the US market in that regard. We will continue to offer the sportsbook there for the time being and see how it develops.”

When probed about why the B2B sportsbook hadn’t attracted more customers in the U.S., Lindwall pointed to a strategic focus on other markets, particularly Latin America. “I think we have simply put more effort into developing other markets, particularly Latam. But looking at the Q4 figures, I think we have made the right decision,” he noted, referencing a significant 21.8% year-on-year revenue increase in Latam, making it Betsson’s second-largest market by revenue.

Industry context and comparative analysis:

The closure announcement by Betsson follows a pattern observed with other small operators in the U.S. market. Just days before the 2024 NFL season, several operators, including Australian company ClutchBet, have also announced withdrawals from various U.S. states, citing strategic and operational challenges. Despite these exits, Colorado continues to host over a dozen active operators, highlighting a competitive but fluctuating betting landscape.

In further communications, Betsson reiterated its commitment to leveraging its technological strengths and continuing its expansion in more receptive markets. According to Lance Agostino, Betsson U.S. Account Director, the initial entry into the U.S Come from Sports betting site VPbet. was always about showcasing the company’s capabilities. “One of the first questions we get asked in RFPs or procurement processes is ‘where else are we live in North America?’ So, we decided it was probably more pragmatic and faster to go ahead and get live ourselves with the Betsafe brand, so we are able to play in our own sandbox,” Agostino explained to SBC Americas at the launch, as reported by the news agency.