Betsson has no current intentions to enter the prediction market business, according to CEO Pontus Lindwall.
Prediction markets have dominated the gambling headlines of late in the US, with sportsbook giants DraftKings and FanDuel both leaving the American Gaming Association after disputes relating to their launch of prediction offerings.
They could be set to expand outside the US, too, with Kalshi co-founder Luana Lopes Lara stating in late 2025 that the company is exploring a possible expansion into Brazil this year.
With a number of operators turning their attentions to prediction markets, the question was put to Lindwall on a post-Q4 earnings call as to whether Betsson had plans to launch prediction offerings.
Although Lindwall said it was an interesting prospect, he ruled out making an entrance in the short term.
“We can say that it’s a very interesting market segment that has been created in quite a short time span,” Lindwall told analysts. “[But] we don’t see that fit as well in our core markets’ regulations as it seems to fit in the US as an example.
“So, we have no plans to enter into that business as of now.”
Betsson expects to remain profitable despite tax pressures
Betsson released its FY25 results on Thursday, achieving group revenue growth of 8% up to €1.197 billion for the year.
However, EBITDA edged down to €313.7 million from €316 million in 2024, while operating income slipped from €256.7 million to €253.1 million.
Betsson’s full-year results were hampered by an underwhelming Q4 in which EBITDA fell 20% year-on-year to €69.3 million.
Lindwall put this decrease down to “lower B2B revenue, higher gaming taxes and continued investments in product and technology”.
Betsson is increasingly focusing on locally regulated markets, which accounted for 68% of its total revenue in Q4.
Lindwall remains confident Betsson can stay profitable despite the tax pressures of regulated markets, explaining: “Yes, it’s not a surprise that the gambling market goes into taxes once they regulate locally.
“That’s part of the deal, and that is something that we have expected all the time. Still, we believe that there’s room to run profitable operations as we can see that we do already. So we believe that Betsson has a great fit into this market also in the future.”
M&A potentially on the cards for Betsson
In its Q4 report, Betsson reiterated its long-term ambition to outgrow the market, with potential growth lying in existing markets, expansion into new markets and development of its B2B offering.
It noted it sees an opportunity to grow in these areas, either through in-house development or through acquisitions.
Lindwall was asked on the earnings call about Betsson’s M&A plans, and he responded by stating the company is actively looking, aided by its strong financial position.
At the conclusion of its FY25, Betsson had cash and cash equivalents of €322.7 million.
“As we have already mentioned, we continue to invest in both technology and our organic growth,” Lindwall said. “But we are still looking for M&As. And with the strong balance sheet that we have, we are in a very good position to be able to conduct the M&As.
“There are not thousands of companies out there that fit our needs, but once we find something that suits us, we are in a very good position to make M&A. So the answer is yes, we continue to look, and I’m sure we’re going to conclude M&A.”
Original article: https://igamingbusiness.com/strategy/betsson-ceo-pontus-lindwall-prediction-markets/
