Pferdewetten.de, or Pferdewetten.de AG, is the largest German provider of horse betting and has also been active in the sports betting sector for years via partners. The company is now looking to massively expand the latter. 25 betting shops were purchased from a "renowned company in the German sports betting industry" and put into service on 1 April under the Sportwetten.de licence. But this is by no means the end of the story.

If you want to legally place bets on equestrian sports in Germany, there is practically no way around Pferdewetten.de. The online portal is regarded as the most important provider in this area in Germany and, according to official information, has the largest database of its kind with 170,000 archived racing videos. More than 30,000 customers can place bets via live streams in 34 countries. The company also operates a large stationary shop for horse betting in Munich. The brand also acts as a sponsor for various sporting events and prizes, such as the "Pferdewetten.de Prize of German Unity" and the "Hansa Grand Prix".

But that's not all, because Pferdewetten.de AG is also one of the absolute big players in German-speaking countries when it comes to sports betting on football, tennis, basketball, etc. Together with Cashpoint Malta Ltd, a subsidiary of Gauselmann, Sportwetten.de was launched. This company comprises a broad online offering as well as many stationary betting shops. The brand intends to massively expand its activities in the latter area. The number of locations is set to increase from 108 to 222 by the end of 2024. The first step in the expansion will be 25 branches purchased from another German sports betting professional. These began operations on 1 April.

Expansion began with a letter of intent and is set to really take off in 2024

At the beginning of 2024, Pferdewetten.de AG announced in a press release that it had signed a letter of intent and would be taking over 25 retail shops from another major player in the industry together with its wholly-owned subsidiary SW Shops GmbH. The managers of the "renowned company in the German sports betting industry" from which the shops originate are to remain on board.

According to official information, the takeover will take place in two stages. A newly founded company will be involved, in which SW Shops GmbH will initially hold a 30 per cent stake. The remaining 70 per cent is then to be acquired by 2026. Pferdewetten.de AG will have to pay 6.3 million euros for the first 30 per cent. The purchase price for the remaining shares has not yet been determined. It will be based on the earnings generated in the 2026 financial year. In addition, further business is to be continuously developed via the new partner.

Overall, the company is talking about an expensive investment. However, the takeover of existing shops or entire chains also offers certain advantages. Above all, it would enable earnings to be around three times higher.

What those responsible at Pferdewetten.de have to say about the expansion plans

Pierre Hofer, CEO of Pferdewetten.de AG, will continue to focus on expansion in the future:

"With this acquisition, we are strengthening the expansion of our sportwetten.de betting shop network and at the same time continuing to massively expand our own shop operations. In 2023, the focus was on establishing and expanding the retail network as quickly as possible. With 108 locations at the end of the year, we are within our target corridor. In addition to maintaining the pace of expansion, we now also want to significantly expand our own portfolio, which currently stands at three shops."
"We want to maintain our high pace of expansion and grow to 222 locations by the end of 2024. We are deliberately pursuing a two-pronged approach in order to utilise all opportunities that present themselves for the rapid and best possible market penetration of our sportwetten.de brand: On the one hand, we work with franchise partners. This is less capital-intensive for us."

Hofer also emphasises the great relevance of setting up our own shops, i.e. without franchise partnerships:

"Through this agreement, we are already securing an additional higher double-digit number of shops today - and from 2027, this will also have an undivided impact on earnings. I am very grateful to our partner for the trust they have placed in our future collaboration, as the management team will remain on board and continue to provide expert and sales-orientated support for operational development."

Conclusion

In future, we will therefore discover significantly more betting shops operated by Pferdewetten.de AG and its subsidiary SW Shop GmbH (Sportwetten.de). The question remains as to which "renowned company in the German sports betting industry" the first 25 branches come from and why its name is not mentioned, as is usually the case with such shops? Is it possibly the remnants of Tipster, whereby Pferdewetten.de AG does not want to burden itself with negative press? Official statements on the reorganisation plan indicated that the business operations of the franchisees were to be secured in the long term. In April 2023, a major raid was carried out at Tipster, following which, among other things, tax evasion in the three-digit million range was discovered. Several suspects were arrested.

Image source: https://pixabay.com/de/photos/pferde-rennen-pferd-tier-reiten-3811270/

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