Cherry Solidifies Swedish Gambling Market Dominance Purchasing Betman ABPublished September 19, 2016 by Ivan P
Swedish Cherry AB has entered the deal to purchase Betman AB, the company in control of 15 'restaurant casino' points across the country.
Swedish gambling giant Cherry AB has announced their deal to acquire Betman AB, a company operating numerous 'restaurant casino' points all over the country. The acquisition will see Cherry increase their market share to a total of 68%, establishing the company as an overwhelmingly dominant market force.
Cherry agreed to pay a total amount of SEK 3.9 million (roughly £350,000) to take over the ownership of 15 restaurant casino points operated by Betman. There is a total of 27 gaming tables across these establishments situated in Salen, Visby, and Stockholm.
The deal will see Betman receive the amount of SEK 2.3 million immediately, while the remainder of the payment will be made no later than the Q3 of 2017. Cherry expects this purchase to contribute around 11 million SEK to the company's overall income.
Fredrik Burvall, the CEO of Cherry AB, explained how the acquisition will help solidify the company's position in the market, especially in the three cities where the restaurant establishments are located. At the same time, they expect to improve the performance of the casino points using their well trained and experienced personnel.
Continued Growth and Potential Legal Issues
The company's continuous expansion has ensured their position as an absolute market leader, but Cherry could face certain legal problems if the trend continues. Namely, with 68% of the total market share, they are very close to actually becoming the market themselves, and future acquisition could trigger competitive legislation.
However, experts believe that Cherry is not there yet and there is still room for expansion before these concerns become a serious consideration.
Apart from their land-based operations, the company also has a very strong online sector, with the casino games developer Yggdrasil as their main wildcard. Yggdrasil Gaming has recently launched their White Label Studios solution for game development and many experts believe that the company has a very bright future ahead.