Betsson to Maintain Pontus Lindwall in Leadership Position
Flip-Flopping on Lindwall: Betsson AB has performed a dramatic reversal and plans to retain CEO Pontus Lindwall, following a stunning decision by the freshly elected Board of Directors. The decision was prompted by a recent extraordinary general meeting (EGM).
U-Turn on Lindwall’s Ouster
In an unexpected twist, Betsson AB announced that their new Board of Directors decided to rescind a company decision, made on September 19, to dismiss Lindwall as CEO. Previous criticism targeted the controversial handling of this matter, leading the company's chairman, Patrick Svensk, to step down last month.
The revamped Board of Directors was elected at today's EGM held at the company headquarters in Stockholm. Three previous board members, Fredrik Carlsson, Johan Lundberg, and Eva Leach, were re-elected. Joining them are two new members, Lindwall and Peter Hamberg. At the same EGM, Lundberg took on the Chairmanship role.
The EGM was instigated by Betsson's leading shareholders in response to their dissatisfaction with how the executive was being treated. The group includes Hamberg Management Limited AB, Svea Ekonomi, the Hamberg, Boyer and Kling families, and Lindwall's mother, Berit Lindwall.
As per the Board's updated stance, Betsson's immediate-term to mid-range priorities should focus on resolving issues in the Netherlands and entering the promising U.S. market. With the unpredictable nature of both undertakings, changing leadership at this juncture could prove detrimental rather than beneficial. Consequently, the Board has retracted the decision to replace Lindwall.
Lundberg recounted extensive discussions with key stakeholders, the company's executive team, Betsson employees, and major shareholders. He declared, "Considering the discussions the current Board does not feel it would be advisable to change leadership at present. The company needs to direct its attention to critical tasks ahead, like the surprising Netherlands predicament."
Betsson's Dutch Dilemma
At the end of September, Betsson AB announced that it halted accepting Dutch customers on its international websites, complying with a new enforcement policy from the local gambling authority, Kansspelautoriteit (KSA). Dutch operations officially ceased on October 1, 2021, coinciding with the launch of the nation's freshly regulated online gambling market.
The KSA implemented a rule for providers indiscriminately serving both the Dutch market without a license and those not actively targeting it but still serving Dutch players. These entities must now halt operations until they secure a license. The sudden change is projected to negatively impact Betsson's operating profit (EBIT) by approximately SEK25 million ($3 million) monthly, with the long-term implications dependent on the timeline to acquire a license.
- Contrary to the original decision made on September 19, Betsson AB has decided to maintain Pontus Lindwall as CEO, following a change of heart by the newly elected Board of Directors.
- The revised decision was reached during today's Extraordinary General Meeting (EGM) held at the company headquarters in Stockholm, where three previous board members and two new members, including Lindwall and Peter Hamberg, were elected.
- Lundberg, one of the new board members, took on the Chairman role during the same EGM, and in discussions with key stakeholders, the executive team, Betsson employees, and major shareholders, it was deemed unwise to change leadership at present.
- The Netherlands' predicament, where Betsson has halted accepting Dutch customers due to the Kansspelautoriteit's (KSA) new enforcement policy, has been identified as a critical task that requires immediate focus. The company's financial performance could be negatively impacted by this change, with an estimated monthly reduction of SEK25 million ($3 million) in operating profit (EBIT).
