Swedish operator Betsson has become the latest firm to target the US sports betting market.
The company has secured a 10-year market access deal with Colorado’s Dostal Alley Casino and aims to launch its proprietary sportsbook in the first part of 2021.
Colorado a proving ground for the Betsson sportsbook
Betsson said the launch was a “first and cautious step” into the US market. The roll-out will offer key learnings for other states and an initial brand presence, the company said.
“This new market entry reflects Betsson’s general business strategy of prudence where the aim is to grow in a financially safe manner,” the company noted in a press release.
Colorado will also act as a proving ground for Betsson’s sportsbook technology, with the company aiming to offer a B2B product as well. Betsson has signed one B2B sportsbook partner to date.
US online betting adoption on the rise
Betsson CEO Pontus Lindwall said: “The whole country has a strong culture of gambling and is now experiencing online penetration at an 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.”
Betsson is one of the largest online gambling operators in Europe, with around $550 million in annual revenue. Nearly three-quarters of its revenue comes from casino and one quarter from sportsbook.
Colorado sports betting competition heats up
Betsson will launch into a highly competitive Colorado online sports betting market, with operators drawn by low taxes and unrestricted mobile access.
As a result, the market could generate $200 million in annual revenue at saturation, according to H2 Gambling Capital.
CinDee Spellman, CFO of Dostal Alley Casino, added: “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.”