Coolbet

History and Founding

Coolbet was founded in 2016 in Tallinn, Estonia, by Jan Svendsen and a team of industry veterans. Unlike many operators that rely on third-party software, Coolbet invested in building its own sportsbook engine from scratch. This allowed the company to offer narrower margins and more aggressive pricing, appealing to value-conscious bettors in Scandinavia and the Baltics. The company’s growth accelerated with the acquisition of Swedish-licensed Redbet Sportsbook in 2018, expanding its regulatory footprint and user base. By 2020, Coolbet had established a strong presence in Finland, Germany, and the Baltic states.

Business Model

Coolbet operates a B2C sportsbook and casino under its own brand, while also providing its proprietary platform as a B2B solution through GAN’s suite. The company generates revenue primarily from the sportsbook’s margin (the difference between odds offered and actual outcomes) and from casino house edge. Its low-margin sportsbook strategy attracts sharp bettors, and its control over the entire betting flow—pricing, risk management, settlements—enables cost efficiencies and rapid product iterations.

Core Products and Platforms

- Coolbet Sportsbook: A multi-sport platform with live betting, cash-out, and a Bet Builder tool for custom combination bets on football and other sports. - Coolbet Casino: An online casino featuring slots, table games, and live dealer titles from providers such as Evolution, NetEnt, and Play’n GO. - Virtual Sports: Simulated sporting events available around the clock. - B2B Platform: Via GAN, Coolbet’s engine is offered as a white-label or API solution for third-party operators. - Redbet Sportsbook (acquired 2018): Now integrated into the Coolbet ecosystem.

Market Position and Regulation

Coolbet competes with global giants like Flutter, Entain, and Kindred, as well as regional operators. Its proprietary tech gives it agility in product development and cost control, but it faces intense competition and stricter regulation in key markets such as Sweden and Germany. The company has also expanded into Latin America, securing a license in Peru and eyeing Brazil’s regulated market. Customer reviews frequently highlight fast withdrawals (often within minutes), a straightforward interface, and high betting limits.

Acquisition by GAN and Sega Sammy

In 2021, GAN plc acquired Coolbet for up to €45 million, integrating its technology into GAN’s B2B offering while keeping the B2C brand active. Following Sega Sammy’s acquisition of GAN in 2023, Coolbet gained the financial backing of a global entertainment conglomerate but remains operationally independent. This ownership structure provides capital for further expansion and product development.

Challenges and Outlook

Coolbet faces ongoing challenges from strict European regulations and fierce competition. However, its proprietary technology and lean cost structure position it well for organic growth and potential market share gains in emerging regulated markets like Brazil. The company continues to invest in its platform and expand its geographical footprint.