Rumours of acquisition of the Swedish iGaming group, Betsson AB, by the American clothes and merchandise company Fanatics Inc. have sent the company’s stock value climbing .
Both American and Swedish media broke the news early on Thursday, September 16th, 2021 . By midday, the Betsson stock value rose by nearly 11% on the Stockholm Nasdaq AB exchange, Central European Time.
Interestingly, this is happening during increasing regulation of the United States’ online gambling market. Presently, 26 states have decided to allow legal online betting, with casino regulation also rising.
Betsson comes with many years of experience providing online betting in regulated markets throughout Europe. The company has developed high-end technical solutions to offer its casino and sportsbook services to international markets. From all indications, it seems Fanatics has eyes for this know-how and experience.
Fanatics Inc. has applied for a New York State online sportsbook license. This comes on the heels of boosting their board of directors with celebrities, such as Jay-Z and Earvin “Magic” Johnson .
The company was previously in talks with online giant DraftKings over a possible acquisition. But as the negotiations fell through, Fanatics has been eyeing a couple of other possibilities, including Betsson and the American-based Rush Street Interactive (RSI).
Originally based in New Jersey, RSI has expanded over the US as more states opened their doors to iGaming legislation.
The fact that RSI has an online presence in multiple states gives them a lead over Betsson. They do, however, lack a unique technical platform for hosting websites. Betsson, on the other hand, has been building its platform for many years.
The rumour states that Fanatics finds Betsson’s complete online solution to be fascinating. Betsson has been a world-leading sportsbook and casino provider for decades in Sweden and other European countries. In addition to its platform, having all necessary personnel also makes Betsson an attractive acquisition.
Betsson’s CEO, Pontus Lindwall, has turned down multiple interview requests from Swedish media on the rumours. Also, the company has not published any press releases or responded to media requests on the subject .
There seems to be an attitude shift in many American states towards online gaming in the last few years. Since the late 2010s, more states have agreed to allow online sports betting. Presently, there are 26 states where sports betting is legal in the US. Not many states allow online casino games, and those that do require the company to run a land-based casino.
Forbes estimates that by the end of 2021, the American gaming market will break all previous records and make revenue worth over 44 billion dollars . The industry’s revenue figures make it a global giant and a highly sought-after market for European conglomerates and domestic investors.
Betsson has also been looking to expand into American soil and has made acquisitions of their own to that end. In April, Betsson bought a 35% share of TG Lab’s latest online casino platform, Strive, which is expected to soon hit the North American market .
Meanwhile, our focus remains on the US online gaming market, where we will report events surrounding the Betsson, RSI, and Fanatics rumours as they unfold.