Swedish gambling group Betsson AB is making a U-turn to retain its CEO Pont Lindvall following the decision of its newly elected board of directors. The board was recently approved at an extraordinary general meeting (EGM).
Abolition of the decision to replace the CEO
Betsson AB announced today that its new board of directors has decided to reverse its September 19 decision to replace Pontus Lindwall as group CEO. The controversial decision and the way the matter was handled were the reasons why Betsson chairman Patrick Svensk was forced to step down last month.
The new board was elected today at an extraordinary general meeting at the company's headquarters in Stockholm, at which three members were re-elected - Fredrik Karlsson, Johan Lundberg, and Eva Leach. He also introduced two new members, Lindvall and Peter Hamberg. The AGM also elected Lundberg as Chairman of the Board of Directors.
The general meeting was called by a group of major shareholders of the company, including Hamberg Management Limited AB, Svea Ekonomie, the Hamberg, Boyer, and Kling families, and Lindvall's mother Berit Lindvall, who was disappointed with the way the CEO was being treated.
According to the newly elected board, Betsson's immediate and medium-term priorities should be the situation in the Netherlands and entry into the US territory, and based on the uncertainties surrounding both priorities, a change at the executive level would be more damaging. than supportive. As a result, the board decided to withdraw the decision to replace Lindwall. In Sweden https://utansvensklicens.casino/pay-n-play-casino/ remains Betsson's main competitor.
Lundberg outlined several discussions that had taken place with key stakeholders, management, Betsson employees, and major shareholders. He stated, "Based on these discussions, the current Board does not believe it would be a good idea to change management now. The company needs to focus on all the important work that needs to be done, such as the unexpected situation in the Netherlands.
Suspension of operations in the Netherlands
At the end of September, Betsson AB announced that it would stop accepting Dutch customers on its international websites in accordance with a new enforcement policy published by the country's gambling authority Kansspelautoriteit (KSA). The suspension began on 1 October 2021, when the Netherlands launched the newly regulated online gambling market.
The KSA introduced a rule for providers who do not actively target the Dutch market without a license but serve Dutch players, which requires them to stop operations until a license is granted. The unexpected development is estimated to negatively impact Betsson's operating profit (EBIT) by around SEK 25 million ($3 million) per month, with a long-term effect depending on how long it takes for the company to get a license.
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