Betsson consolidates Great Britain activity under Rizk brand
21 October 2020
(PRESS RELEASE) -- Betsson has been reducing its business in the U.K. continuously for the last few years, including closing its U.K. office at the end of 2018. The Group has to date operated with nine brands, on three different platforms, and under four licenses in the U.K. market. As part of its strategy, Betsson has decided to further consolidate its U.K. business to focus on growing one single brand (Rizk). This initiative will increase efficiency and have a positive impact on the contribution from its U.K. business. It will also enable resources to be reallocated for profitable growth in other markets. The other eight brands will be retained in the Group’s portfolio for use in other markets and therefore there will be no need for write-down of goodwill or trademark.
Betsson’s market share in the UK is relatively small with revenues currently representing approximately 3% of the Group’s revenue. The UK regulatory framework has undergone significant changes in the past few years, requiring extensive investments both in technology, regulatory compliance as well as marketing, which is not sustainable with the Group’s current UK setup. Three of the Group’s four licences will therefore be handed back to the UK Gambling Commission (UKGC) with immediate effect. One of these licences was under review with the UKGC.
The eight UK-facing brands under the returned licences will be closed with effect from today with no further deposits or bets accepted. The customers of these brands will be contacted accordingly, all deposits will be repaid, and all outstanding bets will be paid out as winning bets.