Betsson's Latin American Revenue Surges to 36% of Group Total in Q2, Fueling M&A Ambitions

Betsson AB reported that Latin America became its largest market during the second quarter of the year, accounting for 36% of the group's total revenue of €310.2 million. Regional revenue climbed 32% year-on-year to €112 million, driven by all-time-high performance in Argentina, Peru and Colombia. CEO Pontus Lindwall said the company had long targeted LatAm to take the lead as its biggest region, noting it sees "more structural growth to come from LatAm than from Western Europe."

Strategic Shift and M&A Funding

The operator’s pivot toward Latin America is backed by a new €75 million credit facility that Lindwall said serves the company's M&A strategy. He told iGB that the funds will be used to either enter new markets or acquire valuable technologies, complementing both organic growth and existing acquisitions. Lindwall sees further potential in LatAm countries where Betsson does not yet operate, describing the region as offering "more potential and more possibilities."

Nordic Decline and Competitive Pressures

In contrast, revenue from the Nordics fell 17% during the quarter as Betsson reduced marketing spend in Sweden and Denmark. Lindwall pointed to tight regulations and high customer acquisition costs, adding that unlicensed operators create a "problematic situation" in many European markets. He explained, "When we compare the effectiveness of our money, we prefer to invest in other markets than the Nordics."

Q2 Financial Highlights

Betsson's gross profit dropped 8% year-on-year to €177.5 million, giving a gross profit margin of 57.2%. The decline was partly attributed to lower B2B revenue from one large customer. Active B2C customers increased 31.9% to 1.83 million, though total customer deposits fell 7% to €1.38 billion. Regulated revenues rose 17% and now represent 75.5% of total group revenue.

World Cup Technology and AI Investments

To handle World Cup traffic, Betsson expanded its platform capacity to manage up to five times normal load. Lindwall said he was "very satisfied with the performance of the sportsbook from a technical angle," citing UX enhancements that made it easier for customers to find betting options. The company is also investing in AI tools across operations, though Lindwall described these as still early-stage, noting, "I think there is way more to come."