French sports wagering firm, Paris sportifs, has declared that it has gained approval after securing backing from BNP Paribas.
This is positive news for the organization and its future prospects, as BNP Paribas is now a stakeholder in Paris sportifs. Chief Executive Officer Hervé Schlosser informed iGamingBusiness.com that this does not indicate the group will deviate from its current objectives, specifically potential expansion into Spain and Buenos Aires.
It is understood that BNP Paribas is now a minority stakeholder in Paris sportifs/Sportnco, which is positive news for the Toulouse-based betting solutions provider.
The financial group’s investment branch will hold a minority interest in Paris sportifs and will invest roughly €2 million in the organization. It will also furnish a €3.4 million line of credit alongside ARKEA (part of the French mutual credit group) and BPI France, the French public investment bank.
This arrangement signifies that Paris/Sportnco will be able to broaden its operations, expanding its team from roughly 70 to 100 individuals, and benefiting from the presence of robust institutional investors from its strategic board, thereby solidifying its position and providing a solid base for its product development.
“Paris’s involvement is founded on a long-term perspective,” stated Hervé Schlosser, chief executive officer and founder of Paris. “The organization invests its own resources in these ventures and sets a long-term course for growth, without the short-term return pressure more prevalent in private equity-backed ventures.”
This also highlights the significant achievements Paris has made in technology and business since 2010, as well as the “controlled opening” of the French online gambling market.
However, Schlosser also acknowledged that the commencement of its activities was not straightforward – high taxes and regulatory burdens, as well as a highly competitive marketplace, led to the failure of many, often larger and more well-known suppliers and operators within a few years of their launch.
When questioned about this, Schlosser agreed, but pointed out that what enabled his company to establish a niche for itself was its adaptability and capacity to adjust rapidly to the B2B market.
“In practice, this signifies strict risk management and collaboration with our operators,” he explained. “This allows us to generate the necessary profits for our clients and combine this with a strong emphasis on technological development.”
This meticulous attention to detail and adaptability has aided the group in expanding its customer base, which comprises NetBet, ZEBet, Genybet and PMU (for fantasy sports) in France, and Casino Gran Madrid, MGA and Sisal in Spain. In essence, this signifies that France Pari/Sportnco operates the most extensive B2B betting networks in both nations.
So how will France Pari/Sportnco utilize this fresh funding and stakeholders?
“This will enable us to continue developing technology for current and prospective clients. We aim to constantly enhance our platform, which will facilitate further growth,” Schlosser stated.
Naturally, his organization will be seeking further expansion, including new customer registrations and potential acquisitions?
“Indeed, eventually,” he remarked, “but that’s always an integral part of our ongoing endeavor. For instance, Sisal will be launching in Spain in the third quarter, and we are collaborating with them to apply for a license in the province of Buenos Aires.
“It’s no secret that we are also engaged in discussions with entities in other Latin American nations and operators in the United States. For the time being, we will concentrate on refining our platform and technology and sustaining our B2B growth.”
If Schlosser’s remarks sound somewhat commonplace, that’s not their intent. He implies that he desires to concentrate on the task at hand before shifting his focus to business development or merger and acquisition opportunities.
Consequently, the emphasis is presently on expanding the company’s existing operations and capitalizing on the participation of new organizations and investors. However, announcements concerning commercial and merger and acquisition activities are also anticipated in the future, as the group is actively pursuing these endeavors behind the scenes.
As Schlösser stated: “The accord validates the expertise and technology that Paris, France has amassed since 2010.
“We will persist in implementing this strategy, which has proven highly effective for us thus far, and naturally, we will maintain all options open, as fresh opportunities will undoubtedly emerge.”
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