Betsson AB has announced that it has purchased a 28 percent investment in Canadian start-up Slapshot Media Inc. as part of its strategic expansion into new markets.
The investment, led by subsidiary ‘Betsson Perch AB,’ will give Slapshot Media with CAD $3 million (€2 million) in venture capital as part of the Betsson group’s commitment to participate in Canada’s altered gaming sector.
A statement from Betsson read: “Slapshot Media Inc is a Canadian company that specialises in creating localised sports content and provides marketing and managed services to the online gaming market in Canada.
“Slapshot Media Inc will work exclusively with Betsson to build the presence of the Betsson Group in the upcoming regulation in the Canadian market.”
Following the progress of its investment, Betsson said that it will retain first rights to raise its stake in Slapshot Media to 70 percent, with a maximum price of CAD $25 million (€17 million).
Canadian gaming due to undergo significant changes
Following the passage of ‘Bill C-218 – The Safe and Regulated Sports Betting Act’ in June, Canadian gaming is due to undergo significant changes, allowing provinces to regulate their own gambling laws independently.
As things stand, Ontario will be the first province to implement an online gaming licencing scheme, which will take effect in 2022.
Pontus Lindwall, CEO of Betsson AB said: “The Canadian market represents a great opportunity for Betsson to increase the share of revenues from regulated markets. The local know-how and experience that the founders of Slapshot Media Inc possess will position Betsson well on the upcoming regulation of the Canadian market.”
In H1 trading, Betsson management committed to accelerating the company’s new market strategy, with CEO Lindwall emphasising the importance of expansion in underserved markets to offset market saturation in established European jurisdictions.