With over 16 brands in its portfolio such as Betsafe, Betsson, NordicBet and CasinoEuro, Betsson Group is one of the largest references in online gambling in the world, delivering entertainment and fun for over five decades. In Brazil, the company is the only operator licensed to operate horse racing bets.
Check out the main excerpts from the interview with firm’s Managing Partner, André Gelfi:
GMB - André, I would like you to tell us about Betsson's current global positioning.
André Gelfi - Our global positioning is actually a philosophy that has proved to be perennial. Our philosophy is to pay attention to the market in a sustainable way and that has been proving to be successful. The results in terms of expansion, growth and reputation confirm this position. We have been repeatedly awarded by different events annually. Our focus is the iGaming sector, a digital world that has been growing a lot. We started in Europe and during the year 2020, despite the pandemic, we expanded our horizons beyond Europe, to Latin America, Africa, and Asia. I am very impressed with how we managed to deal with something that seemed so unusual at the beginning of the pandemic.
And how did the company achieve international recognition as one of the largest betting and entertainment companies in the world? It was a tough fight, wasn't it?
It was a tough fight. I think the great success of the company was to enforce the philosophy of One Betsson, the culture of the company itself where everyone feels part of something bigger than each individual. This philosophy of working sustainably to provide customers with the best experience possible. Our qualification, image and reputation are the result of work done from the inside out and the harmony that exists in the group is perceived by the different interlocutors of our segment and even outside of it. Culture is our main differential in order to have an interesting product and health to do the job in the best possible way in each of the markets with different needs. Culture is the main differential of the company today.
You talked about the expansion of the company last year, which was difficult due to the interruption of football championships and other sports. How was that impact for Betsson? In the beginning it was felt with the discontinuity of sporting events. At first, we saw a lack of possibilities and alternatives in the sports betting segment, but we saw a positive impact due to the fact that the market has changed its characteristics with the closure of all offline activities and migrating to online. In the casino and poker segment, we saw substantial growth in different markets where we operate.
It was difficult and continues to be, since sports activities have returned, albeit without an audience. But online gaming is here to change concepts!
I believe so, Gildo, and looking at a football match without fans in the stands is in fact one less attraction. The fans, we know well, provide an atmosphere inside the stadium and not being present, make a difference. It is an impact not favorable to the attractiveness of the event. On the other hand, people at home and the scarcity of entertainment alternatives, makes football to some extent compensate for this because it is happening. I think that on the balance sheet, the effect is still positive and people at home want entertainment and want to relax, and our segment has benefited from offering quality products and availability. Speaking for Betsson, we were able to handle this challenge very well.
All around the world?
Yes, all over the world. The company grew 24% during the year 2020, according to data presented two weeks ago. We did very well in the markets in which we operate, including Brazil, where we had significant growth in the country during 2020.
How is the Latin market for Betsson?
Latin America is a priority for Betsson, as well as southern Europe. We have a very important presence in Italy and Spain. And in Latin America it is gaining weight. As you know, we have business in Brazil and in 2020 we entered Colombia. And at the beginning of the year we had excellent news, the license we obtained in the Province of Buenos Aires. Thus, we see with optimism and a perspective of relevant growth in the continent, which brings together a series of very interesting things and is an important opportunity. I dare say it is the most important opportunity for the sports betting segment in the world.
And in the case of the Brazilian market for Betsson, where you already have a license, how is this market doing and what is it like to offer entertainment to the Brazilian public?
We look at the Brazilian market with extreme optimism. This is clear from the size of the effort we are making to improve our value proposition. We did a platform migration and a brand change, because before we were SuaAposta. We merged the brand with Betsson and today we are Betsson Brasil, a global brand of the group. Now we are launching a new vertical, a promotional product to run that will attract attention. And we are obviously following the entire sports betting regulation process and the conversations that are taking place in the National Congress. I can't talk about forecasting when, but listening to the authorities saying that betting regulation will happen in 2021, we are working with this scenario.
But you already have a license, in a market without regulation. How is that?
It is wonderful. We really have to work in a unique way. We are authorized to market horse racing bets. We have the main licensed betting platform in Latin America to offer horse racing. We pay expressive prizes, and we have racecourses from all over the world, with races taking place every five minutes, and we work with local ways of payment. We advertise with traditional and digital media in the Brazilian market and, as I commented, we will start to work more on the commercial part during the next months. We are in the fine-tuning stage of a new promotional fantasy product, Betsson FC. We are very optimistic about the advancement of this product throughout 2021.
The turf sector practically died in Brazil, with so few activities. How to bring lovers of beautiful careers to this new world?
It's a good point. We understand that it is a niche market. I don't see the horse racing betting market as one that has the same growth potential that we see in sports betting at a football event. You can't compare. But there is an audience and knowing that the market is limited, we cannot afford to not have an exceptional product. When Betsson decided to come to Brazil with SuaAposta, it saw an interesting synergy, as it had acquired RaceBet, a platform for horse racing that is a reference in Europe and highly awarded. So, we see that this market has the capacity for growth and maintenance of leadership, and we understand it as very interesting and complementary to an iGaming offer in general. Until the regulation of sports betting comes out, we will work in the best possible way with this vertical and with what we are launching, which is a promotional product linked to football, Betsson FC, which I am telling you first-hand. It has not yet been opened to the market. If you enter our website www.betsson.com.br you will find the link to Betsson FC. It is a fantasy product in which we will pay more than R$ 1 million (US$ 180k) in 2021. There will be more than 300 tournaments linked to the main football leagues in Europe and America.
Do you believe in fast regulation in Brazil?
I work with the base scenario of the personnel of the Ministry of Economy and SECAP. Due to the progress we are making with BNDES, where the process was included in the PPI, I understand that it is well underway for us to have a regulation still in 2021, unless we have a problem along the way. We cannot predict the future, but I believe it is likely that we will have regulation in 2021. In our current business model and short-term plans, we do not have any dependence on this regulation. But when it happens, it will be seen with the best possible eyes. We are working to be prepared for the regulation of sports betting in the short term.
And when it happens, what are Betsson's plans to grow in a regulated market?
Our plans are not very different from the plan of any relevant and global player, faced with a unique opportunity such as the Brazilian case. It is working with an absolutely local approach, bringing international know-how in a symbiotic way to the knowledge we have about the Brazilian market, placing a value proposal that is interesting for the betting public in Brazil, which today has a size X and should reach 7X this size as the market starts to develop. Those recreational audiences who often do not see themselves as gamblers will become gamblers. We say this with a high degree of conviction.
And what is this X value that you commented on?
Look, Gildo, it’s a big enough value so I’m not worried about the absolute value. We know that it is a market of billions of reais, but if it is 2, 3 or 4 billion reais, it is billions of reais and it is a very expressive market only for sports betting. Imagine if we had the regulation of the other modalities. I think it's something that in my head logically makes perfect sense to have this discussion along the way. It does not make much sense for Brazil to regulate sports betting and leave out other online modalities, after all it would be making licenses less attractive, in theory, than international gaming licenses and competing in a disadvantageous way as a product offering in the international market. The government, at the time of this modeling, will face this issue. I imagine that the consultancies that will work with the government will bring this issue to the table. When evaluating the market, competition and profitability of licenses, this theme will come up. We just do not know how it will be addressed and whether there is an environment for the short term or whether the question of other game modalities will be addressed in the medium or long term. The fact is that regardless of whether or not it is worked on, the sports betting market being regulated in Brazil will be attractive in itself. We are talking about a continental country, with expressive internet penetration and absolutely inserted in the football culture. We have countless experiences in Europe that allow us to affirm with an important degree of precision that it will be a billion-dollar market. I have this conviction and I know that I am not the only one. Our audience and other members of the segment share this perspective and believe in it.
There are many sportsbooks in Europe, and England is one of the most practical examples of this, with physical stores. Do you have this scenario, with regulation, for Betsson?
I think we have to make choices. Our group notably has experience with the online world and enough challenges to not disperse attention with the offline world. I believe in this segment and it will be very attractive, but we focus on online.
Even thinking about a scenario with sportsbooks where the gambler spends time and interacts with other people, has a drink, lunch, dinner, and places bets?
This business model makes perfect sense, Gildo. I don't see it with any resistance. As I put it, it's just a matter of prioritization. In principle it is not a priority until I am given an opportunity that makes me reconsider the priority. It might be. Today I come from a place where digital is the priority, but analyzing alternatives and reviewing convictions, I am the first to have my ears open.
We already have the news of Betsson FC. What else will come even before regulation. What are Betsson's plans for the coming months?
We are putting the team on the field with Betsson FC and we will pay more than R$ 1 million in promotional prizes, where we will offer tournaments under different leagues, such as English Premiere, Champions League, Libertadores, Copa America and Brazilian Championship. We have an ambitious plan to promote this product. It is already working, but there is still a fine adjustment in the value proposition, but we have a year of relevant challenges to make this product the success we believe it will be. This is our agenda for 2021.
What is your message to the Brazilian authorities who are dealing with regulations, since you are a professional with extensive experience in the sectors of betting and online gaming?
I will rain in the wet. SECAP people have everything very clear and there is no need to reinvent the wheel. They will be very well advised from the technical point of view with the BNDES and the service providers that will be hired. We have seen the criteria and have a history of how the BNDES works on other projects not related to the sector, so that by not reinventing the wheel and creating a regulatory framework in time and in a sustainable manner, this market will be a success. And the sooner that happens, the better. Brazil is in a hurry and needs to raise money, so I think that there is no justification to stop standing up for Brazil to put this agenda aside and not treat it as a priority. The time is now. It has been a long time since the law was passed and the process has matured well.
Source: Exclusive GMB
