New US market entrant Betsson has pledged to go head-to-head with its more established rivals in the hunt for stateside B2B sportsbook contracts.
Although Betsson is predominantly a B2C operator in Europe, it will prioritize B2B deals in the US.
That route is a more cost-efficient way to monetize Betsson’s proprietary sportsbook technology, according to Betsson CEO Pontus Lindwall.
Head to head with Kambi?
When asked how the company would compete with more established, specialist suppliers like Kambi, Lindwall told LSR:
“We have huge respect for Kambi and are really impressed by their product. But we can say we already go head-to-head with them in some of our markets and we address different customer preferences. We know the product we have is very competitive with them and addresses different needs for customers.”
Betsson posted global B2C sportsbook revenue of $25 million in Q2, on a 6.9% hold rate.
Fierce competition in Colorado sports betting
The company announced last month it would launch a B2C sportsbook in Colorado at the start of 2021. The market will act as a testing and proving ground for the proprietary sportsbook platform.
“It is better for us to fine-tune our product using our own B2C brand,” Lindwall said. “That doesn’t mean we don’t have big ambitions for B2C – we do – but the main strategy is B2B.”
Betsson faces stiff competition in Colorado sports betting, with a litany of brands attracted by low taxes and unrestricted mobile access. The Denver Broncos already announced three sportsbook partners, hinting at the level of marketing spend that might be thrown at the state.
However, Lindwall was unfazed, saying Betsson had competed successfully in a wide range of markets around the globe.
Still room for casino
The company also owns its own casino platform, and Lindwall suggested that could be a further part of the B2B offering down the road.
Betsson gets around three-quarters of its existing revenues from casino. That was worth $240 million in Q2, up 40% year-on-year.
The company’s share price dipped 7% following its Q2 results last month.