Just as the prediction market is gaining momentum in the United States, even leading to DraftKings and FanDuel withdrawing from the American Gaming Association, another international gambling giant, Betsson, has explicitly said "no". CEO Pontus Lindwall stated in the Q4 earnings call that there are no plans to enter the prediction market business. Although he acknowledged that it is a "very interesting" and newly formed niche market, he believes that this model does not fit as well with its core market's regulatory framework as it does in the US. Meanwhile, Betsson reported its FY2025 results: group revenue increased by 8%, reaching 1.197 billion euros, but EBITDA slightly decreased to 313.7 million euros. Facing regulatory pressures such as increased taxation, Lindwall emphasized that the company will continue to focus on localized compliant markets and seek acquisition opportunities with a strong balance sheet.
Strategic Focus: Although the prediction market is hot, it is not Betsson's current direction
While some global operators are turning their attention to the prediction market, Betsson has chosen to watch cautiously. Lindwall provided a clear explanation:
•Regulatory Fit: The prediction market model does not align as well with Betsson's core operating market's regulatory environment as it does in the US.
•Strategic Steadfastness: Therefore, the company "currently has no plans to enter this business".
This stance highlights Betsson's selectivity in strategic expansion. Although the prediction market (including election betting) is highly topical, Betsson prefers to deepen its established advantages in tracks where regulatory risks are more controllable. This contrasts sharply with other aggressive peers and reflects different operators' trade-offs between emerging opportunities and compliance costs.
Financial Report Interpretation: Revenue Growth Under Profit Challenges and Responses
Betsson's FY2025 performance showed revenue growth but profit pressure:
Revenue: Annual group revenue of 1.197 billion euros, an increase of 8% year-over-year.
Profit: Annual EBITDA was 313.7 million euros, slightly lower than the 316 million euros in 2024; operating profit decreased slightly from 256.7 million euros to 253.1 million euros.
Q4 Pressure: Q4 EBITDA decreased by 20% year-over-year to 69.3 million euros, which Lindwall attributed to decreased B2B revenue, increased gambling taxes, and ongoing investments in products and technology.
A notable strategic focus is that Betsson is increasingly focusing on locally regulated markets, which accounted for 68% of total revenue in the fourth quarter. Lindwall openly accepts that taxation is an inevitable result of market regulation: "Yes, it's not surprising that the gambling market moves towards taxation after local regulation, this is a part we anticipated." However, he confidently stated that the company still has room for profitable operations and believes that Betsson will continue to adapt well in future markets.
Future Leverage: Strong Balance Sheet Supports Acquisition Ambitions
Facing growth challenges, Betsson reiterated its long-term ambition to "exceed market growth" in the financial report, and clearly pointed out growth paths include: deepening existing markets, expanding new markets, and developing B2B business. These goals can be achieved through internal development or acquisitions.
Lindwall confirmed in the call that the company is actively seeking acquisition opportunities and has strong financial backing. As of the end of FY2025, Betsson had 322.7 million euros in cash and cash equivalents. He stated: "We are still looking for acquisition targets. With our strong balance sheet, we are in a very favorable position to execute acquisitions. Although there are not thousands of companies that meet our needs on the market, once we find the right one, we are in a very favorable position to make acquisitions."
This indicates that, without chasing hot topics like the prediction market, Betsson will rely more on strategic acquisitions to integrate resources, gain market share or technology, as a key lever for growth in an increasingly competitive and strictly regulated global market. As often mentioned in industry analyses by PASA official website, in an era of rising regulatory costs, operators with financial resilience and clear strategic focus will have an advantage.
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