Online gaming company Betsson has attained the horse betting operator RaceBets in a deal that is worth around €40 million.
The horse betting operator currently has licences in Ireland, the UK Germany and Malta and they offer punters the opportunity to bet on over 250,000 different races yearly.
Seeing that up to three-quarters of RaceBets’ revenue comes mainly from the locally regulated markets mostly Germany and the UK, it makes a perfect strategic fit for the gaming company.
Ulrik Bengtsson, CEO and president of Betsson AB stated: “Horse racing is important in many of our markets and the key rationale of the acquisition of RaceBets is to enable our subsidiaries to accelerate the launch of a world-class horse racing product on all core brands.”
Currently, horse racing is one of the most popular betting sports with an estimated worth of €3.5 Billion in the European sports betting market.
Betsson will acquire RaceBets from their company’s founder along with the German Thoroughbred Racing Association. This transaction is subject to regulatory approval and is expected to be finalised sometime in the beginning of 2017.
In 2015 RaceBet’s revenue was €9.3 million and adjusted Ebit was €3.36 million. Their annual growth rate between 2013 and 2015 was recorded at 12%