Kresimir Spajic
5 QUESTIONS
Betfred is one of the smaller sports betting operators and is having a difficult time entering the U . S . market . Kresimir Spajic , a highly experienced sports betting operator , was brought on to evaluate the company ’ s U . S . status in 2023 , and explains what he found . His experience includes time with such companies as Great Canadian Entertainment , Apollo Global Management , Hard Rock International , Rush Street Interactive , Borgata Hotel Casino , Bwin and more . He spoke about where the sports betting market is headed in the U . S . and also discussed the possibility of more states entering the iGaming market . He sat down with GGB Publisher Roger Gros at the ICE conference and tradeshow in Barcelona in January . To hear and view a full version of this GGB Podcast , visit GGBMagazine . com .
1
GGB : You were a professional soccer player for a while before getting into gaming . How did that work out ? Spajic : Many years ago , I started a career as a professional soccer player and I was pretty good when I was young , so I signed my first professional contract . But at some point I realized that I would never become an international star . I decided to weigh between two opportunities and decided that I should pursue my academic career rather than my professional career . And it seems to me that it proved to be a solid decision .
2
What ’ s going on with Bedfred in the U . S . market right now ?
In 2000 , Betfred had a very , very ambitious plan , and they managed to get licensed and open in 10 states . But with everybody that was coming at that point in the market , it was more about rushing into the market without thinking through what this really means . This usually resulted in commercial agreements , which were probably not sustainable long-term . Deals were made with some of the suppliers without really understanding how the U . S . market works and how much extra capital investment you needed .
3
So what now ?
We decided to close all our markets in states in which we operate in the U . S . beside Pennsylvania . We have a very good partnership with Poarch Creek Indians and with the Wind Creek casino there . We want to keep this as our foothold in the U . S . for now . And we still have a plan for growth in the U . S . We ’ re working on a very unique deal which we believe will provide certain competitive advantages , which will allow us to reach sustainability in the U . S .
4
Why is it so tough for smaller sports betting operations to get traction in the U . S .?
I think it ’ s a combination of things . Remember , DFS companies spent a fortune to build not only a database but also the brand awareness . I believe that they spent around $ 500 million or $ 600 million in 2018 on just advertising the brand and their product . So when real-money gaming happened , it was an easy transition for them into that vertical . And if you have economies of scale , everything else is easier .
5
Kresimir Spajic
CEO , Betfred US
Brazil just legalized online sports betting , and though it seemed to be somewhat of a convoluted process , they ’ re up and running . What ’ s your evaluation of that market right now ? It ’ s very different than the U . S . In the United States , you had a virgin market . Nothing had been happening for a long , long time . But Brazil never stopped . Brazil is a market that has been developing for the last two-and-a-half decades . The key players have been already established . This is just basically converting an already-existing market into a taxable market . I think it will be an extremely competitive market . More than 60 licenses were approved . Many of these companies will be out of business in two or three years . But , look , it ’ s very exciting because it ’ s a humongous population that live in that country . There is a huge culture of sports betting there as well . So it ’ ll be a great market , but it ’ s definitely not an easy market .
“ They Said It ”
“ We ’ ve been here in the great state of Iowa for over 25 years , building three world-class facilities in Dubuque , Northwood and Sioux City , and here we are in Cedar Rapids . This is going to be the best one yet . More amenities , more places to become a part of this community , more places to be entertained . And we promise to make you very , very proud with this development .”
— Brent Stevens , founder and chairman of Peninsula Pacific Entertainment , at a groundbreaking ceremony for the company ’ s Cedar Rapids casino that was approved on the third attempt
CALENDAR
March 10-12 : SiGMA Africa , GrandWest Casino and Entertainment World , Cape Town , South Africa . Produced by SiGMA Group . For more information , visit sigma . world / africa .
March 12-13 : NEXT Summit New York 2025 , Convene , New York City , New York . Produced by NEXT . io . For more information , visit next . io / summits / newyork .
March 31-April 3 : Indian Gaming Tradeshow & Convention , San Diego Convention Center , San Diego , California . Produced by the Indian Gaming Association . For more information , visit indiangamingtradeshow . com .
April 15-16 : East Coast Gaming Congress , Hard Rock Hotel & Casino , Atlantic City , New Jersey . Produced by Spectrum Gaming Group . For more information , visit eastcoastgamingcongress . com .
May 7-9 : Global Gaming Expo ( G2E ) Asia , the Venetian Macao , Macau , China . Produced by RX . For more information , visit g2easia . com .
May 13-15 : SBC Summit Americas , Broward County Convention Center , Ft . Lauderdale , Florida . Produced by SBC Events . For more information , visit sbcevents . com .
June 1-5 : SiGMA Asia Summit , SMX Convention Center , Manila , Philippines . Produced by SiGMA . For more information , visit sigma . world / asia .
June 10-12 : SBC Summit Malta , InterContinental Hotel , Malta . Produced by SBC Events . For more information , visit sbcevents . com / sbcsummit-malta .
June 17-19 : Canadian Gaming Summit , Metro Toronto Convention Centre , Toronto , Canada . Produced by SBC Events . For more information , visit sbcevents . com / canadian-gaming-summit .
8 Global Gaming Business MARCH 2025