Betsson acquires a 35% stake of Strive Platform
Betsson has shown it’s serious about its expansion into the US market with its $6.5 million purchase of a 35% stake of TG Lab’s Strive Platform. This news comes not long after the release of Strive, a player account management system that can be implemented into online sportsbooks and other online gambling platforms.
TG Lab and Betsson
TG Lab is a betting and gambling software developer that creates full iGaming platforms or services to be integrated into existing sites. The company has ties to several major betting firms and announced a partnership with Betsson in 2020. Betsson is a Swedish online gambling company operating sports betting, casino and poker platforms across Europe. The Betsson brand is now looking to expand into the US market as regulations are lifted.
The agreement between TG Lab and Betsson gave the Swedish company access to TG Lab’s player account management system, helping to facilitate and support its launch into the US. Since this agreement was made, TG Lab developed its Strive platform, a refined player management system designed for the North American market.
A subsidiary of Betsson AB acquired a 35% stake in the Strive platform, paying a total of $6.5 million. The acquisition was made possible through the partnership between the two companies and may also include further investment in the future. As it stands, Betsson has the opportunity to increase its shares in Strive later on in the year. After Betsson launches in the US in the second half of 2021, Betsson could potentially pay $1 million more to obtain another 5% stake in the platform.
On top of what was paid by Betsson to take part-ownership of the Strive platform, the Swedish betting company is also willing to grant TG Labs a convertible shareholder loan worth up to $2.5 million. Through this, Betsson will help to ensure that the launch of its services in the US is a success.
Betsson’s US Launch
By acquiring a 35% stake in the Strive platform, Betsson ensures that it will be the first sportsbook to be integrated with the Strive player account management system. Betsson hopes to gain a competitive advantage over its rivals in the newly emerging US market as more states legalise online sports betting and casino gaming.
Betsson is looking to launch its first US sportsbook in 2021, having obtained a partnership with Dostal Alley Casino in Colorado. After Colorado legalised sports betting in May 2020, a number of online sportsbooks have already gone live in the state. Pending Betsson’s approval by Colorado regulators, the sportsbook should be up and running this year, marking the betting company’s first steps into a rapidly growing US market.
Betsson has ambitions to continue its growth into the US market, and the launch of its sportsbook in Colorado is an important step for the company. Regarding the acquisition of Strive and gaining a foothold in the US, Betsson’s CEO Pontus Lindwall had the following to say: “This investment is another important milestone in our US entry. The investment will support our B2C launch with the Betsafe brand in Colorado as well as broaden Betsson’s offering to the US market.
“The US market has a limited number of PAMs and sportsbooks that are truly set up for the multi-state regulatory environment and scale. This investment brings together two high-quality, independent iGaming technologies for the US market.”
Photo: Aidan Howe, Pixabay