Brazil, Paraguay launches will propel LatAm growth

Betsson AB’s CEO, Pontus Lindwall, recently highlighted the company’s robust growth trajectory in Latin America, particularly following new market entries in Brazil and Paraguay. The latest figures reveal an impressive 70% revenue increase in the region during Q1, contributing significantly to Betsson’s overall financial performance.

In its most recent report, Betsson detailed a year-on-year group revenue growth of 18.3%, reaching €293.7 million ($334.7 million). This upward momentum is largely driven by a remarkable 70.3% surge in LatAm revenues, which climbed to €74.5 million.

During this period, Latin America accounted for 25% of Betsson’s total revenue, propelled by escalating casino activity and enhanced sportsbook margins. This significant market presence underscores the region’s growing importance in Betsson’s global strategy.

In February, Betsson secured a full license for the newly regulated Brazilian market, just one month after the market launch. The company officially launched its betting services in Brazil in April. Additionally, Lindwall noted on the post-results analyst call that a technical launch occurred in Paraguay in February, following the acquisition of a local online casino license at the close of 2023.

Now operational in 25 countries with local gaming licenses, Betsson is strategically leveraging its established presence in Latin America, having successfully penetrated markets in Argentina, Colombia, and Peru.

Despite this momentum, Lindwall emphasized a cautious approach to the Brazilian market. He stated, “Brazil is a huge opportunity, and we want to start in a measured way, ensuring our product is finely tuned for this market. We will gradually ramp up our marketing efforts based on consumer traction.”

“Given our strong performance in other regional markets, we are confident about achieving long-term success in Brazil. This market offers substantial growth potential for our continued expansion across Latin America,” he added.

Strong Performance for Betsson in Latin America

Martin Öhman, Betsson’s CFO, acknowledged that the launches in Brazil and Paraguay occurred too late to influence Q1 results significantly. However, he provided insight into the performance of other markets in the region, noting that revenue rose by €31 million overall.

Öhman reported that Argentina continues to demonstrate robust underlying activity, with increased deposits and turnover leading to record high revenues in Q1. Similarly, Peru has shown revenue growth driven by strong sportsbook and casino performance compared to the same period last year.

Additionally, he addressed the introduction of a new 19% value-added tax on online gambling in Colombia, implemented in February, which has not yet notably impacted revenue. “Colombia is a relatively small market, but any tax increases and regulatory shifts do affect our business,” Öhman acknowledged. “Fortunately, this change has not significantly altered our overall financial performance.”

As Betsson continues to navigate the dynamic landscape of the gambling industry, its strategic focus on Latin America showcases the company’s commitment to growth while adapting to regulatory changes and market demands. The optimism surrounding its initiatives in Brazil and Paraguay reflects a forward-thinking approach that positions Betsson as a leader in the evolving landscape of online gaming.