Pontus Lindwall, the Betsson Group CEO, in a recent interview, explained why he believes that digital transformations are still the future of gambling. Having been a part of the iGaming industry for several decades, Lindwall has weathered enough storms and seen enough trends pass by to know what truly drives innovation.
Highlights from the Story
- The CEO believes chasing industry buzzwords isn’t an effective long-term strategy. As technology continues to evolve, the scale at which they are implemented defines ground reality, and that is what providers, suppliers, and leaders should focus on.
- Local regulations will be the key to sustainable operations. While Europe still struggles to rein in rogue operators with its archaic laws, Denmark has made a positive impact with its updated regulatory model, in which the government is partnering with private operators.
- Lindwall believes operators will have to balance local regulations simultaneously to succeed. No two regions have the same regulations and technical demands. The key is to be dynamic and adapt to diverse market needs.
Chasing Industry Buzzwords Won’t Yield Results
Speaking at the recently concluded NEXT Summit in Valletta, the CEO offered a practical perspective on what lies ahead for the industry. Referring to the transformation from land-based gambling to gambling on digital platforms, he said, “The trend that started the iGaming industry is still going strong. And that transformation will be in place for many more years.”
While most people familiar with the sector are consumed by emerging technology, Lindwall’s outlook on the iGaming industry is more pragmatic. He describes a predictable pattern where new technologies pass through a distinct hype cycle:
Every time something new pops up, it becomes the industry buzzword. Almost everyone you meet will either talk about implementing it into the business framework or how it will be the next big thing to blow up in the market. But then the hype dies down. While things take place eventually, it’s at a much slower pace than what people had originally hoped for.
One of the best examples of this theory, according to the CEO, is mobile gaming. Hyped to be the next big thing in the early 2000s, mobile revenue made up a only minor portion of the annual books till it went mainstream much later. Lindwall sees this pattern repeating with most modern technology, commenting:
Take crypto, for example. Everybody spoke of it two, three years ago. It is only now that crypto is slowly starting to make an impact. Similarly, everyone perceives AI as the future right now. While some companies are using the tech to a certain degree, widespread implementation will only come in a couple of years.
Local Regulations Will Shape the Future
Local regulations are a transformative force behind the global online gambling industry. Lindwall believes local licensing frameworks will stabilise global markets in the coming days. Europe, however, must proactively reform its gambling policies to ensure regulatory effectiveness in the future.
It is widely accepted within the industry that Europe’s local regulations over the past half decade have been pretty ineffective in reining in illicit operators. The high volume of black-market activity clearly points to the lack of regulation, which needs to be addressed promptly.
Lindwall praised Denmark’s efforts to update its regulatory model. “The regulator has been willing to cooperate with the industry more than other regulators,” he said. The CEO also pointed out a basic misunderstanding of the regulator-operator relationship, and went on to add:
Some regulators seem to have the whole picture completely wrong. They think we are the enemy. But in reality, we are all on the same team. We operate within regulated markets, and they regulate those same markets. So, we have a mutual interest in market regulation.
Focus on Strategic Growth
Lindwall confirmed that acquisitions remain the point of focus for Betsson’s growth strategy. The company maintains a strong balance sheet with accessible capital and carefully assesses potential companies before acquiring them. Lindwall explained:
Mergers and acquisitions remain a key part of our business model. We are always on the lookout for operators, companies, technology, and anything else that can give us a competitive edge in the market or improve our products.
The CEO believes operators will need to navigate diverse regulatory environments to succeed. “The successful ones will be those that can simultaneously adapt to different regulated markets. This is actually quite complex, as no two markets can have the exact technical demands or regulations,” he remarked.
If you’ve found CEO Pontus Lindwall’s insights on the future of online gambling valuable, make sure to explore the 2025 iGaming Trendbook by Ace Alliance. This comprehensive resource features expert perspectives from over 25 industry leaders on regulatory shifts, technological innovations, and emerging global markets.