The state of Colorado has been busy lining up providers for its much-anticipated legal betting platform. The latest addition is Swedish online gambling firm Betsson who makes their first step into the exploding US betting market thanks to an agreement with Colorado-based partner Dostal Alley Casino. Betsson is one of the lucky 33 providers granted a license in the state.
Betsson enters a Colorado market that went live in May and produced a somewhat impressive $25.5 million in gross, unaudited sports betting revenue despite the world-wide shuttering of casinos and the hibernation of sports leagues around the world. Betsson was seeking a soft-landing spot for their first foray into the US market and Colorado is widely viewed as low-risk, high reward as we enter the time of sports and the legal betting industry finding a sense of normalcy.
The deal will run for 10 years and its proprietary sportsbook is scheduled to launch in early 2021, assuming all regulatory hurdles are cleared. Dostal Alley Casino gets the expertise of a well-established European brand while Betsson gets its foot in the US door with a casino operator that has been up and running for decades.
Pontus Lindwall, CEO and President of Betsson AB said: “I am very excited to reach this milestone, further expanding Betsson’s global reach by entering a new continent through the fast-growing online market in the US. Dostal Alley Casino has more than 60 years of experience of doing business in Colorado and will play an important role in our journey to build US presence.”
CinDee Spellman, CFO of Dostal Alley Casino said of the deal: “As a company with over 28 years in the gaming business, we are thrilled to welcome Betsson to the US as we partner with them for online sports betting in Colorado. With their decades of experience in online gaming we are confident that they will bring the very best experience to players in the Centennial State.”
Betsson, although not a widely known name in the US market, has been a mainstay in Europe as it has worked to cement itself as one of the biggest providers on that continent. The company boasts $550 million in annual revenue, three quarters of which comes from its casinos and the other portion coming from its online sportsbook.
Colorado represents a “first and cautious step” for the company into the US market and will act to give the company some brand recognition for possible future US expansion. “This new market entry reflects Betsson’s general business strategy of prudence where the aim is to grow in a financially safe manner,” the company noted in a press release.
Colorado, the 18th US state to legalize sports betting is viewed as one of the most competitive markets in the US sports betting industry with a projected $6 billion in bets annually upon maturity of the market. That $6 billion handle will generate an estimated $400 million in revenue per year for providers in the state. Low taxes, a rabid fan base, and unrestricted mobile access have made Colorado one of the more enticing destinations for prospective gambling providers.
“Colorado’s month-one results cement the state as a leader in the US gambling arena. $25 million in revenue is impressive on its own, and it’s even more impressive when you consider how sparse the gambling options are during a globally trying time,” said Chris Nesi, Managing Editor for ColoradoSharp.com. “This first month showcases the strength of the Colorado gaming industry, and I think we’ll continue to see impressive numbers from the state in the future.”
In the end…
Both Dostal Alley Casino and Betsson come out ahead with this partnership deal, as does the sports betting consumer in Colorado. All will have a part in elevating the state to an elite class in the sports betting industry.
Betsson officially has its foot in the US door. Look for the company to act on its expansion plans as it attempts to become a recognizable name on the US legal betting landscape.