Entain Puts Ladbrokes and BetCity on the Chopping Block in Mulled Sale

Entain, one of the biggest gambling companies in the United Kingdom, is reportedly considering selling some of its brands. People familiar with the matter told the Financial Times that the UK-based gambling powerhouse has hired Wall Street boutique advisory Moelis to advise the board on what brands to divest.

A potential divestment of assets could streamline Entain’s business, allowing it to shift its focus toward core markets and brands. A person familiar with the matter tipped off the Financial Times that this move will be all about figuring out what markets Entain wants to focus on.

The news outlet added that Entain would only dispose of brands that are not integrated into the company’s technology platform and pointed out that, depending on the results of the review, “disposals may not be necessary.”

Possible candidates for Entain’s potential sale include BetCity in the Netherlands, Ladbrokes in Australia, Enlabs in Sweden and CrystalBet in Georgia. Super Sport and STS are also brands that are not on the company’s main platform but their favorable performance makes them unlikely candidates for a sale.

For reference, non-integrated brands were responsible for roughly a third of the company’s revenue in H1 2023.

The Financial Times reached out to Entain and Moelis, both of which declined to comment.

Entain Is Eyeing Changes to Its Business

Speaking of sales, other recent reports suggested that Entain might be interested in divesting its PartyPoker brand. More importantly, an analyst suggested that the company could possibly sell its stake in the BetMGM brand, which it co-owns with MGM Resorts International.

The news comes in the wake of intense M&A efforts that ended up hurting the group’s overall business. In addition, the company was financially affected by the conclusion of the investigation involving its historic business in Turkey.

As a result of the deferred prosecution agreement with the Crown Prosecution Service (CPS), Entain vowed to withdraw from unregulated jurisdictions, resulting in its exit from over 140 markets.

In the meantime, Entain parted ways with CEO Jette Nygaard-Andersen, who left amid a decline in the group’s share price.

In more recent news, the gambling giant reinforced its team with the addition of Ronald J. Kramer, former president of Wynn Resorts, to its board of directors.