Pferdewetten.de was originally a small-scale professional horse racing website, but in recent years, through a series of acquisitions and strategic adjustments, it has rapidly expanded to become an important competitor in the German gambling market. Under the leadership of CEO Pierre Hofer, the company is actively integrating resources, challenging giants like Tipico, while dealing with a complex regulatory environment. This transformation involves not only asset acquisitions but also reshaping the market landscape.
From horse racing experts to gambling players transformation
Pferdewetten.de AG was founded in 1997, headquartered in Düsseldorf, initially mainly relying on the German horse racing market, small in scale but stable in operation. Honestly, the company had previously exited sports betting due to regulatory deficiencies, focusing on horse racing, which limited development. Until 2018, the company acquired the Sportwetten.de domain name, re-entering sports betting, using the cash flow from the horse racing business to support expansion. Hofer pointed out that this move turned the company from a "boring" horse racing operator to a startup mode, issuing additional capital and suspending dividends, preparing for expansion.
HappyBet acquisition and market expansion practice
In 2023, Pferdewetten.de acquired the HappyBet franchise rights from Playtech through its subsidiary NetX Betting, involving about 600 hardware devices, such as betting terminals. This transaction is part of Playtech's exit from the B2C business, Hofer said it was mainly for market share, "We know the product can enhance store performance." In fact, the company is also advancing a joint venture with Bet3000, which is five to six times the size of HappyBet, with dozens of stores converted. The goal is to become the second largest retailer within four years of operation, just behind Tipico (about 50% share), with the number of market operators reduced from 11 to 6, the integration speed is amazing.
Regulatory challenges and business outlook analysis
Since the implementation of the "Interstate Gambling Treaty" in 2021, Germany has strict deposit limits, and compliance costs are high, Hofer revealed that he spent 300,000 euros on lawyer fees last quarter alone. Excessive regulation has led many players to turn to illegal platforms, and online casinos are frustrated. But the company has basically achieved break-even, and record profits are expected next year. The business focuses on Germany, with a small operation in Denmark. Hofer believes that regulations may be revised, the market appears to shrink but underground growth is actually increasing, and the company's model can be sustainable for the next few years.
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