SBC News Voice of the Sports Betting Industry
Three years into the introduction of permanent licences by the Hellenic Gaming Commission (HGC), the Greek gaming industry is fast growing but is still being shaped, both by regulation and the operators active within it.
Providing this overview of the sector from Betsson’s position of leadership for edition 26 of the SBC Leaders Magazine, the company’s Managing Director for Greece, Thanos Marnos, explained how the firm has gained market share and established a dominant brand under these circumstances.
Moving first and growing fast
Whilst first mover advantage was a factor – as Marinos noted, the firm was the ‘001 licensee’ back in 2011 before gaining a permanent licence in April 2021 – Betsson Greece’s MD was adamant success can not simply be chalked up to this.
“It has contributed, but it has come with a lot of challenges,” he said. “When you are the first licence holder, you are riding the first wave of the regulatory framework which you have to implement.
“This is when we saw that, as an organisation, we have what it takes to be able to get the licence and go live first. “It was for sure an advantage – it felt good to be the first one in the market – but also practically it helped us establish ourselves as one of the top five igaming companies.”
Two years in, Betsson’s experience of Greek gambling has been positive, with the group’s country MD observing that ‘many changes’ in the first six to 12 months of 2021 framework have shaped the market into a stable and profitable one.
With the initial land grab long over and more than 15 licenced operators now active in Greece, backed by licenced casino suppliers, Marinos added that the ‘next phase’ has begun – that being a drive for market share.
“Greece is one of the largest markets in Europe, and there are some big established players that have been there for years,” he noted.
“We are very happy with our ability to have launched first in the Greek market and gained significant market share, and we are not going to settle with a small share – we want to be the market leader.”
In pursuit of market share, from a product perspective casino has been Betsson’s ‘pedigree’ for its Greek customers, described by Marinos as ‘the strongest weapon in our armoury’.
However, product is of course not everything, and as well as having the aforementioned first-mover advantage, Betsson also benefited from its history in Greece, having been active in the market temporarily from 2006-2007.
This meant that when re-launching again in 2011 and after securing a permanent licence in 2021, Betsson was already familiar to Greek customers.
Marinos continued: “We have one of the highest awareness levels among the Greek clientele. This means our market is performing well, and our brand is converting very well in the Greek market.
“Customers now see that Betsson has a stronger platform and products, particularly on casino in terms of branding and acquisition.”
Making room for movement
As with all regulated markets, Greece has conditions that differ from others but require careful consideration – in this case, taxation can be a big hurdle for operators to overcome.
“There is very high taxation, I dare to say one of the highest in Europe at 35% on GGR, and this can make it more difficult for a company to make money in the market,” Marinos explained.
“The second thing is that the new regulatory framework introduced a 15% winnings tax on players for sportsbook and casino. The funds are directed to the Ministry of Finance, which uses them to support sports across Greece.”
All in all, the two levies essentially result in a total tax rate of 50% on gaming firms, which have contributed around €80m in just winnings tax alone annually.
In addition to taxation, from a regulatory standpoint Greece is still a relatively new market in comparison to some of its counterparts in Northern and Western Europe.
As Marinos observed, the new laws and licensing framework have only been active for around 18 months, with many more operators joining from September 2021 onwards.
As a consequence, Greece is a market ‘that is still being shaped in terms of regulation and connectivity with the HGC’, but according to regulatory estimates, total GGR stands at €850m, and ‘there is room for a company that would like to invest, gain market share and make a good profit’.
Lastly, a final factor to consider in Greece – as with any market in the current climate, with regulators across Europe taking a heightened view of player protection – is responsible gambling.
Marinos explained that in Greece, as in other countries, it is a requirement for firms to place limits on deposits and playing times when setting up a new account with any operator.
In this regard, Betsson has also strived to attain and maintain a position of market leadership, having placed awareness of what bettors who fear they are developing problematic behaviour can do.
“We have our responsible gaming campaign, but we also have a thorough test on the Betsson.gr and Betsson Foundation websites that allows customers to check whether they are at risk of problem gambling,” Marinos added.
A casino pedigree with bookmaker branding
On the topic of responsible gaming, Betsson’s Greece MD showed particular pride in the fact that the firm was the first igaming operator in the country to establish a foundation.
The Betsson Foundation, he said, has enhanced RG with events, talks and community outreach, inviting the HGC President and Sports Minister to one particular event, and placing responsibility as a focal point of its marketing approach.
“The Foundation is a constant reminder that we are here to get market share and be successful as an operator, but not forget that we need to give back to the community and engage with our clients with what is important for them,” he said.
“We also created a dedicated TV spot all about responsible gaming. The nature of this was to engage people and put across the message that we want healthy clients.
“No other operator has done this, and the HGC were happy that they have seen this initiative on our side. We are in close collaboration with the HGC on responsible gaming and other areas, providing expertise from our other 20 active markets.”
On a wider scale, whilst casino has been Betsson’s pedigree, sports-centred marketing has also proven a bit hit for the firm in carving out a local brand image.
The company adopted an approach of ‘doing things differently’, avoiding one large single sponsorship and instead diversifying across seven different tournaments and clubs.
Notable examples Marinos highlighted are the Betsson WRC Rally Acropolis and the Betsson Super League 2, as well as an amateur club – Betsson was the first in Greece to do so, working with two influencers – which has proven a hit on YouTube, gaining 400,000 views.
“The Super League 2 partnership goes with the nature of our brand from market entry,” he continued. “There are big established players here, and at the time we were a challenger brand, and wanted to challenge the status quo, gain significant market share and make an impact.
“We believe that this approach, by going across 34 different stadiums throughout the country instead of just one big sponsorship, was the way forward, and that our ability to connect with the local clubs and communities has proven that this was the right idea.”
Having recorded strong growth across multiple markets last year, with full year revenue growing by 18% to €777m and a record turnover of €146m for its casino division, Betsson’s attitude is to ‘stick with what we’re doing’.
Along with other markets, the World Cup proved a strong driver for the firm in Greece, Marinos added – describing engagement with both sportsbook and casino as a ‘pleasant surprise’ during the tournament – and he projected continued momentum for both Betsson and the market as a whole.
“It is no secret that more companies are coming into the market and would like to join, I am expecting to see more join but also for there to be more consolidation,” he concluded.
“In a year or two, I expect medium to high level brands to be operating in Greece, those with a strategy and a plan and the money to invest in order to operate here.
“The licensing fee for five years is €7m, and you need a big marketing spend to make an impact. However, the market is growing very fast due to the regulation and more players coming in will make the market move forward.”
