Betsson buys into Strive Platform

Swedish iGaming giant Betsson has recently acquired a stake in TG Lab’s Strive Platform which was an important step for their North American expansion. The deal was done between Betsson Perch Investments – a subsidiary of Betsson AB – and TG Lab UAB – the creator of the Strive platform.

Betsson has always been quick at expanding and today the company is listed on Nasdaq Stockholm and holds gaming licenses in 12 jurisdictions. The company’s headquarters are in the Swedish capital, Stockholm but most of its operations are done from Malta. Betsson employs over 1800 people in 10 different locations and has been offering casino and sportsbook products in several European and Asian countries, with Betsafe Canada being their latest Canadian Online Casino. The company is now expanding towards the West.

The initial acquisition was of 35% of TG Lab’s shares in the value of $6.5m which translates to £4.7m or €5.4m, but Betsson will have the option to increase its shareholding by 5% – a value of a further $1m – after they launch in the US state of Colorado in the second half of year 2021.  As part of the agreement, Betsson will also grant Strive a convertible shareholder loan facility that is worth $2.5m, making the deal even more appealing for Strive.

TG Lab UAB is an iGaming technology provider and developer that have created the Strive technology after their partnership agreement with Betsson during the last quarter of 2020. The key objective of this agreement for Betsson was to get access to TG Lab’s player account management system aka PAM. With this technology that Betsson now has intellectual property rights to, the company’s launch to the US market is made easier.

As part of the agreement, Betsson’s sportsbook will be the first to be integrated with this platform of a player account management system which is an appealing choice for the US market. Since the US market is regulated on so many levels, a tool like PAM is essential in order for the iGaming operator to operate according to the local regulations. It will also complement the casino giant’s standalone sportsbook and broaden its offering significantly.

“This investment is another important milestone in our US entry,” Betsson’s CEO Pontus Lindwall said. “The investment will support our B2C launch with the Betsafe brand in Colorado as well as broaden Betsson’s offering to the US market.”

“The US market has a limited number of PAMs and sportsbooks that are truly set up for the multi-state regulatory environment and scale. This investment brings together two high quality independent iGaming technologies for the US market.”

Betsson is also expanding towards Latin America and earlier this month Betsson Perch Investments also purchased a 50% stake in JDP Tech for the use of their technology platform for handling payments in South and Central American countries.

Both North and South America are very important expansion grounds strategically for Betsson as they offer great future potential. These two investments were decided strategically for the company’s growth in the world of iGaming. Betsson already has a very strong name in Europe and now they are aiming to establish their brand in the New World.

 

 

Joel Levy
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Editor-In-Chief at Toronto Guardian. Photographer and Writer for Toronto Guardian and Joel Levy Photography