Betsson, the Swedish gaming operator, announced that it does not intend to enter the prediction market sector at this time. This decision was confirmed by CEO Pontus Lindwall during a post-fourth-quarter earnings call. The statement comes at a time when prediction markets are gaining traction in the United States, highlighted by recent developments involving major industry players DraftKings and FanDuel, who have left the American Gaming Association following disputes over their prediction market offerings. The expansion potential of prediction markets has also been suggested by Kalshi’s co-founder, Luana Lopes Lara, who hinted at possible ventures into Brazil. Despite these trends, Lindwall noted that Betsson does not find prediction markets suitable for their core areas due to regulatory considerations.
Betsson’s financial report for the fiscal year 2025 showed a revenue growth of 8%, reaching €1.197 billion. However, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a marginal decline to €313.7 million from €316 million the previous year, and operating income fell from €256.7 million to €253.1 million. The fourth quarter was particularly challenging, with a 20% year-on-year drop in EBITDA to €69.3 million, attributed to lower business-to-business revenue, increased gaming taxes, and ongoing investments in product development and technology enhancements.
Lindwall emphasized that a strategic focus on locally regulated markets is fundamental for Betsson, with 68% of the company’s Q4 revenue stemming from these areas. He acknowledged the tax pressures associated with operating in regulated markets but expressed confidence in Betsson’s ability to remain profitable. “Entering regulated markets inevitably brings tax obligations, which we anticipated. However, Betsson has consistently demonstrated the capacity to operate profitably despite these challenges,” Lindwall stated.
Looking ahead, Betsson continues to explore growth opportunities, both in existing territories and new markets, with a particular interest in enhancing its B2B services. The company is open to mergers and acquisitions as a pathway to growth. Lindwall confirmed that Betsson is actively seeking acquisition targets that align with its strategic objectives, supported by a robust cash reserve of €322.7 million at the end of fiscal year 2025. “We remain committed to investing in technology and organic growth, while also keeping an eye on M&A,” Lindwall mentioned. “Our strong balance sheet positions us well to pursue acquisitions that match our criteria.”
Betsson’s cautious approach towards prediction markets reflects a broader trend within the gaming industry, where regulatory environments significantly influence strategic decisions. The company’s focus on regulated markets highlights the complex interplay between compliance and profitability in the gambling sector. As Betsson evaluates potential acquisitions, the company’s ability to navigate regulatory landscapes will be a crucial factor in its continued success.
Future steps for Betsson include maintaining its focus on regulated markets while seeking growth through strategic acquisitions. The company’s ongoing investment in technology aims to enhance its competitive edge, ensuring that it remains adaptable to the evolving regulatory frameworks that characterize the global gambling industry. As the market develops, Betsson’s strategic priorities will likely evolve in response to regulatory changes and emerging market opportunities.