The Swedish gaming company Betsson AB has announced that they have acquired Europe-Bet an Georgian gambling company in a very nice deal worth at least $50 million.
Europe-Bet had drawn attention to the Georgian Republic, this is a nation that is not well known as a gambling venue. Together with rival Adjarabet the gambling market is doing surprisingly well. Both of the sites have offerings of various gambling options, however, in the Poker world, Adajarabet is a clear leader with a seven-day average of a cash game of 650 players vs. 375 for Europe-Bet. The two sites offer all sorts of gambling, but in the poker world, Adajarabet leads with a seven-day average of 650 cash game players versus 375 for Europe-Bet. Adjarabet has been very aggessive, they have strung together many promotions that has catered for recreational players. This site has gone from relative obscurity to sitting on top of the Top Ten PokerScout rankings to just out side of them.
Europe-Bet hasn’t been quite as aggressive for the poker space as their rival Adjarabet, however they have still joined in the promotional fray on occasion.
According to press release that was issued by Betsson, the initial purchase of the company, Europe-Bet, is $50 million, but things could change by up to $35 million should the Georgian Stage of Gaming regulation remain the same for the next year.
Betsson’s President and CEO, Magnus Silfverberg said that Europe-Bet has already established a very strong brand, this also has a competitive multi product offering is a local regulated market in Georgia. He went on to say that together with Betsson’s technology, there is a foundation for profitability and sustained growth within Georgia and outside.
Revenues for Europe-Bet 2014 were $52,4 million and 80% comes from online sources. Almost half from Europe-Bet’s Sportsbook. Before Tax earnings were $20 million in 2014, and $17 million from online business.
Betsson stated that some of the founding members of Europe-Bet will remain with the company after the acquisition as well a other key employees. It is expected that the close will take place during July.
After this acquisition Betsson is set to become the second largest gambling concern online, within the Republic of Georgia.
An interesting fact is that Bettsson’s Poker room is split into two rooms on two different networks - Ongame Network and the Microgaming Poker Network (MPN). Once players have deposited into their Betsson account, they then have a choice of which one they wish to play then transfer money into the appropriate network. The MPN network is tied to the PokerScout Cash game rankings, and the Ongame Network is 31st.