Betsson upbeat on crypto casino amid Yolo brand acquisition report

Betsson is apparently interested in acquiring Yolo Group’s crypto casino brands, according to a report in The Australian on Monday.  

Although Betsson declined to comment on “rumours or speculative reporting”, its group and operation CEOs have voiced cautious optimism over the future of regulated crypto gambling in an interview with iGB.  

The Australian report suggested Betsson was eyeing Yolo’s Sportsbet.io and Bitcasino.io brands, as the crypto operator pivots into fully regulated operations.  

It follows Yolo Group founder Tim Heath in September announcing the company’s transition to becoming regulated. However, at the time he said Yolo would incorporate its Sportsbet and Bitcasino brands into a singular Yolo.com brand. 

The Australian priced the possible deal at less than €50 million ($59 million). 

‘Momentum [for crypto casinos] is building’

In a January interview, Betsson AB CEO Pontus Lindwall told iGB he believed “momentum is building” for the regulation of crypto casinos, although he feels the vertical is still a long-term play. 

“The sector is cautiously getting there,” Lindwall said. But he takes a longer-term view on the uptake of the vertical in regulated markets.  

“In the medium term, I do expect a gradual uptick in regulated crypto offerings. Regulatory frameworks are evolving – for instance, the EU’s MiCA regulations are laying groundwork for how digital assets are handled, and some forward-looking regulators are open to the idea, provided strict AML controls are in place.” 

Markets already developing or considering a framework for cryptocurrencies include Malta, the Isle of Man, certain Canadian provinces, and the UAE. The MiCA Crypto Alliance, an initiative aimed at simplifying regulatory compliance in the crypto industry, is leading the way on this in Europe. 

Lindwall added: “In the short term, regulated crypto casinos will remain more of a novelty than the norm. Only a handful of jurisdictions today explicitly allow cryptocurrency in online gaming transactions under their licences.” 

He is confident of consumer interest in crypto casinos, especially among “tech-savvy” bettors. 

Notably, he hinted that Betsson would not rush into the vertical until the sector had carried out sufficient risk management. “Public companies and major operators won’t dive headlong into crypto casinos until they’re confident that risks around money laundering, problem gaming and currency-volatility are mitigated,” he said.  

Will the regulatory scenario of crypto casinos improve?

Echoing Lindwall’s optimism, Betsson Group operational CEO Jesper Svensson told iGB he expected the regulatory stability of crypto casinos to start to improve, leading to increased popularity.  

“It’s already evolving, as regulation starts catching up with user behaviour,” Svensson told iGB. “This is a natural progression as both the technology and the regulatory landscape continue to mature.  

“Crypto adoption is high in many markets and that’s increasingly extending into entertainment and gaming. As regulatory clarity improves – with frameworks like MiCA in Europe and similar efforts in other regions – we’ll likely see broader, more structured adoption over time.” 

The conversation around regulated crypto gambling has picked up in recent months as markets have ramped up enforcement against the black market, where it is hugely popular among young consumers.  

In November, Gambling Commission CEO Andrew Rhodes said the UK government could no longer ignore the growth in cryptocurrency usage among younger demographics. 

It suggested working with the government to put a framework for regulation in place in the UK.  

Yolo ‘all in’ on the UAE 

The Australian report suggested funds from the sale of Yolo’s brands could be used to further support its regulated UAE business. 

The UAE is central to Yolo’s pivot to regulated offerings, having obtained two gaming-related vendor licences in the newly regulating market for its Hub88 Holdings and Live Online Gaming Services subsidiaries. 

The licences allow Yolo to supply the UAE’s regulated market with its iGaming content. 

Lara Falzon, Yolo Group’s B2B CEO, told iGB last year that the company was “all in” on the UAE. 

“Yolo is entering the UAE market with a complete ecosystem offering, live studio experiences, slots and aggregation services,” Falzon said. “Thus, providing a fully connected entertainment platform that can provide quality, safety and innovation to players. 

“This all-in approach builds credibility and trust, which effectively gives us a lot of opportunities as well as a head start when compared to our competitors.” 

Kyle Goldsmith

Kyle has been with Clarion since December 2023, joining from the world of sports journalism, subsequently becoming a LatAm-facing senior reporter with iGB.