2023 was more than just another year for B2B casino and sportsbook platform provider Soft2Bet. Far from that, the company marked its strongest year to date since launching in 2016, boasting a revenue jump of almost 50% and growth across the board, according to insights shared by the supplier in early March.
To learn more about this milestone, and the way it positions the company for further growth and strategic developments, including a planned US launch later this year, Yogonet held an exclusive interview with Max Portelli, Soft2Bet CFO.
Earlier this month, Soft2Bet disclosed metrics demonstrating the company’s growth in 2023, including a 46% revenue jump across B2B and B2C and a 207% hike in EBITDA, marking the company’s strongest year to date. What explains this consistently upward trajectory for the company since its launch in 2016?
The introduction of our groundbreaking gamification solution Motivational Engineering Gaming Application (MEGA) has played a pivotal role in our recent growth. MEGA showcased remarkable results, boosting Gross Gaming Revenue (GGR) by over 60%, enhancing player engagement, and elevating average revenue per user (ARPU) by an impressive 70% for our esteemed partners.
Additionally, our strategic expansion into regulated markets has been instrumental in our success. Acquiring new licenses in key territories such as Sweden, Greece, Romania, and Italy has broadened our reach and enabled us to tap into new pools of customers, thereby fueling our revenue growth. This positions us for continued growth in the coming years. As we continue to expand our footprint, we look forward to reaching and catering to new consumers in varying markets.
As you noted, one of the key recent developments for the company is the introduction of its gamification solution. MEGA was presented in February at the ICE London expo. What benefits could this solution unlock for the company going forward?
Having boosted GGR by over 60% and elevated average revenue per user (ARPU) by 70%, MEGA has played a pivotal role in our recent growth and we’re excited about what this innovation will continue to bring to our partners.
By tailoring challenges, rewards, and interactions based on user preferences, MEGA introduces familiar casual games to players, keeping them on the platform longer and engaging in casino games that involve real money. Integrated seamlessly with Soft2Bet’s turnkey solutions, the application ensures a cohesive user experience across the platform, driving higher conversion rates and fostering customer loyalty.
Soft2Bet at ICE London 2024
Expansion was a key factor in Soft2Bet’s 2023, with the company going live in new regulated markets including the aforementioned entries into Sweden, Greece, Romania, and Italy. What are your expectations for them going forward?
Expanding our footprint was key to driving growth in 2023. As iGaming gains traction around the world, we recognize a need for a trusted provider like Soft2Bet in new regulated markets and are excited about the untapped potential, especially in North America.
We saw significant success with our new European licenses and look forward to continuing this strategy with plans to enter the US market in New Jersey, as well as expand into Portugal, Mexico, and Ontario, Canada soon.
If we speak about expansion, the US, which you just mentioned, is an unavoidable topic, with Soft2Bet planning to launch there in the coming months. Why is now the correct time for this step?
Our entry into the US iGaming market, specifically New Jersey, is well-timed for several reasons. Firstly, regulatory conditions are increasingly favorable, making for a strategic entry. Additionally, shifting consumer behavior, particularly toward online entertainment, presents a ripe opportunity.
We’ve also meticulously prepared for this swift expansion, ensuring that we have the necessary resources, technology, and expertise to penetrate this new market successfully. Once we’ve proven success with a proof of concept in New Jersey, then we will look at expanding further into the United States where it makes sense for our business.
Other jurisdictions you have signaled as of interest for Soft2Bet include Portugal, Ontario, Canada, and Mexico. What characteristics must a market have for it to make financial sense for the company to expand into?
There are a lot of factors that come into play when evaluating a new market and making sure that it’s right for our brand. We evaluate the regulatory environment to ensure compliance with local laws and licensing requirements, as well as assess market potential based on demographics, gambling preferences, and profitability.
Fully understanding the competitive landscape in a market also helps us prepare effective differentiation strategies, localization, and new innovations to make sure we deliver the best experience to players in a new market.
With Soft2Bet now building upon a record performance in 2023, do you expect the company to carry that momentum this year? What are the main challenges and opportunities you see in maintaining these financial strengths?
I’m confident in not only carrying but increasing our momentum from 2023 into 2024. As a company, we’re driven and ambitious in that we’re always aiming to surpass our own records and are excited about our North American launches, which will open up many future opportunities.
Challenges lie in effectively allocating capital for new markets, technology, and team expansion while maintaining financial strength. However, with careful planning and strategic mapping, we believe we can sustain growth and success in 2024, which will put us at the forefront of the explosive iGaming industry on the global stage.