Betsson Sportsbook, which has its main headquarters in Stockholm, Sweden, is dipping into the American sports betting market. Betsson has signed a lucrative deal with an American partner, Dostal Alley Casino.
The casino and brewery is located in the old mining town of Central City, about 60 miles from Denver. The sportsbook by Betsson will be a business to consumer arrangement according to a press release by the Dostal Alley Casino and Brewery.
Betsson officials have to get final approval regarding regulations from the Colorado Gaming Association. A Betsson official said on Monday, by mutual agreement, they will be able to have their sportsbook up and running in Colorado by early 2021.
Betsson was founded in Stockholm by childhood friends Bill Lindwall and Rolf Lundstrom. As of 2017, the CEO of Betsson was Lindwall’s son, Pontus Lindwall.
Trying To Break Into US Market For Years
A spokesperson for Pontus Lindwall said, “the team out Betsson have been hard at work since 2018 to get in on the highly lucrative new sports betting market in the US.” The contract signed between Betsson and Dostal Alley Casinos will be in effect for 10 years and is extremely lucrative for both parties, say sources.
According to those same sources, Betsson officials have been putting feelers out in other US markets, though the deal with Dostal Casino was the first to be completed. However, there are several other deals that are currently in the works.
Betsson officials are very elated about this deal with the Colorado Casino. They feel it will establish their brand in the US, and add a steady customer base in the country.
Betsson officials have been studying and observing the growing US sports betting industry. The industry has exploded since the US Supreme Court reversed a sports betting ban in 2018. Since then, more and more states have legalized sports betting.
Betsson Seeks Deals With Minimum Risk, Growth Potential
The brass at Betsson is moving ahead cautiously in the United States since sports betting is a very new industry in the country. A source with knowledge of the company’s dealings told the Wall Street Journal that the company has always progressed in a slow, cautious fashion to minimize the potential risks.
It’s been a method that has served them well for more than 50 years. According to a source that participated in the Colorado deal, the company will open a small office in Denver to serve its client in Central City and other possible clients in the state.
Betsson has another five contracts in Colorado that are in the process of being finalized well before the end of 2020. Colorado was the 18th state to legalize sports betting and officially launched sports betting on May 1 at the height of the pandemic.
Since the state has legalized sports betting, the gaming commission has approved 33 sports betting licenses. Colorado is considered to be an extremely prosperous state in the top six, according to data released by the state.