Betsson Group launches charitable foundation

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The Backstory

Growth markets set the backdrop

Betsson Group’s launch of a Malta-based charitable foundation comes as the operator is leaning more heavily on regulated international markets, especially Latin America, to offset pressure elsewhere in its business. The new structure formalizes community, sports and employee-led initiatives that have long sat alongside Betsson’s commercial expansion, but it also arrives at a moment when the company’s growth story is increasingly tied to countries where sports sponsorship, local partnerships and social visibility carry strategic weight.

Latin America has become central to that shift. In the first quarter of 2026, the region generated €93.0 million in revenue, up 24.7% from a year earlier and equal to one-third of group revenue. Peru, Colombia and Argentina all posted growth, with Peru singled out as a strong market. That regional performance helped support Betsson even as group revenue slipped and profit narrowed, underscoring why local engagement programs in the region may have broader significance for the company’s brand position.

The foundation’s support for the Boosting Up program in Peru fits that pattern. Betsson has described sport and community engagement as part of its identity, and its commercial record suggests why Peru has become more than a peripheral market. The company has said its long-established brand and competitive product offering there helped drive first-quarter results, a point made when Betsson reported that revenue and profit fell in the first quarter despite continued strength in direct-to-consumer operations.

A softer quarter sharpened the focus

The foundation also follows a period in which Betsson’s headline numbers became more uneven. In the first quarter of 2026, revenue fell 3% to €285.3 million, while profit dropped to €25.5 million from €48.4 million a year earlier. Casino revenue declined 4%, sportsbook revenue rose 1% and cash flow shrank 36% to €50 million. The company still reported 1.5 million active customers, but the results showed the limits of growth in some areas and the drag from weaker business-to-business activity.

Betsson attributed much of that pressure to B2B operations, where the loss of one key customer contributed to a steep decline. B2B revenue fell to €51 million from €90 million a year earlier, even as the company said activity from that customer had stabilized. Management framed the setback as manageable over the medium term, but it changed the composition of the business. Business-to-consumer operations, by contrast, rose 15% and were strongest in Latin America and parts of Europe.

That divergence matters for the foundation because consumer-facing markets require more than product rollout and licensing. Operators competing in locally regulated jurisdictions are under scrutiny from customers, regulators, sports partners and communities. Betsson’s charitable work, now centralized in a separate public benefit foundation, gives the group a vehicle to align social programs across markets where its brand is increasingly visible through sports, sponsorships and direct customer acquisition.

Sports sponsorship became a bridge

Betsson has repeatedly used sport as a commercial and community bridge. The company has sponsored football clubs and athletes across several markets, with Latin America a particular focus. Its renewal of a partnership with Club Atlético Boca Juniors in Argentina through December 2028 reinforced that strategy, giving the operator a high-profile platform in a region where it has been expanding for years. The partnership was noted as part of Betsson’s wider regional push when the company obtained a Brazilian gaming license that took effect Feb. 25.

Brazil’s newly regulated online gambling market is another piece of the backdrop. The country’s rules took effect Jan. 1, opening one of the world’s largest sports betting and online casino opportunities to licensed operators. Betsson said its license aligned with a strategy of geographic expansion and would allow it to offer Brazilian customers a regulated online casino and sports betting platform. Its experience in Argentina, Colombia and Peru gave the company a foundation for that move.

Sports also featured in Betsson’s 2025 investor messaging. In fourth-quarter results, Chief Executive Pontus Lindwall pointed to sponsorships of Greek sports teams and a Peruvian volleyball squad while discussing the company’s position. He also referenced support for causes tied to nonviolence against women and anti-bullying. Those comments, reported as Betsson posted narrower fourth-quarter numbers, foreshadowed the more formal philanthropic framework now being put in place.

Regulation raised the cost of expansion

Betsson’s move into more locally regulated markets has helped diversify revenue but has also reduced profitability. Management has repeatedly pointed to higher taxes, licensing fees and market-entry costs as part of the trade-off. In the fourth quarter of 2025, group revenue decreased 1% to €303.9 million, though full-year revenue rose 8% to €1.2 billion. Profit for the year reached €182.4 million, but taxes took a materially larger bite and cash flow slipped.

That pattern carried into 2026. Betsson said an increasing share of locally regulated revenue helped explain lower profitability compared with the prior year. The company also continued to invest in B2C markets that were not yet profitable, reducing operating income by €10 million to €15 million per quarter. Those investments reflect a longer-term view: licensed markets may be costlier early on, but they offer more durable operations if operators can establish scale, trust and brand familiarity.

A foundation may not directly change tax rates or margins, but it can support a broader legitimacy strategy in regulated markets. Operators are under pressure to demonstrate responsible conduct, local contribution and sensitivity to social harms. Centralizing charitable work under a separate legal entity with its own governance gives Betsson a more formal way to manage those commitments, particularly as it operates under licenses in 25 countries across Europe, Africa, North America and South America.

Deals and technology widened the platform

Alongside local-market growth, Betsson has been buying assets to strengthen its platform. The company’s acquisition of Rhino Entertainment Group gave it a larger presence in Canada and added proprietary technology intended to support its B2B offering. The deal, first announced in March and later completed, included entities with assets, licenses, personnel and operations connected to Rhino’s B2C activities in Ontario and the rest of Canada.

The acquisition was valued at about €64.5 million, funded through existing cash resources. Betsson said the assets had generated an estimated €13.7 million in EBITDA in 2025. Rhino’s brands include Casino Days and Lucky Spins, and the company held an Ontario license. Betsson had already entered the province with its Betsafe brand after Ontario opened its regulated market. The transaction was described as part of an effort to create long-term value through both new B2C markets and a stronger B2B platform.

The Canadian expansion, detailed when Betsson finalized the Rhino Entertainment acquisition, matters because it shows how the operator is pursuing scale on multiple fronts. Canada offers regulated-market growth, while Rhino’s technology may help repair weaker B2B momentum. At the same time, more jurisdictions and brands increase the complexity of coordinating corporate responsibility programs. A centralized foundation can help bring consistency to that work across markets.

World Cup tailwinds and longer-term stakes

Betsson’s second-quarter 2026 performance showed the upside of that broader footprint. Revenue reached an all-time high of €310.6 million, with B2C revenue representing 84% of the total and rising 14%. Monthly active users hit a record, up 32%, while Latin America accounted for 36% of revenue. The World Cup helped drive customer engagement, supported by dedicated marketing, a talk show, a podcast and product activity in key markets.

Management cautioned, however, that major tournaments are useful for customer acquisition but do not transform the long-term economics on their own. The stronger quarter, covered when Betsson reported record second-quarter revenue ahead of the World Cup, still included softer B2B performance and higher sales costs. Deposits and handle also declined despite higher revenue, reflecting a business that is growing but not without pressure points.

The foundation therefore lands at the intersection of commercial expansion and reputational management. Betsson is building in regulated markets, investing in technology and sports partnerships and trying to restore B2B growth while protecting margins. A charitable foundation gives the company a clearer structure for community investment in the same places where it is seeking customers, licenses and long-term acceptance. Its success will depend on whether those programs are viewed as sustained local commitments rather than add-ons to market entry.