Gambling and entertainment industry behemoth Entain has announced that it has agreed to acquire online sports betting and gaming brand BetCity for an initial consideration of €300 million ($312.9 million).
There will also be a deferred contingent consideration of up to €550 million ($574.5 million). The deal itself may be worth up to €850 million ($887 million). The Ladbrokes and Coral betting firms-owner will be purchasing the company from Sports Entertainment Media B.V.
Leveraging BetCity’s Product to Expand in the Netherlands
This move reflects the company’s efforts to establish a presence in the Netherlands, one of the most recently licensed gambling markets in Europe that have been courted by some of the biggest brands in the industry. Through BetCity, Entain will be able to position itself in the lucrative gambling market while bringing its own unique expertise to the Netherlands and melding it with BetCity’s established country-specific best practices.
BetCity will further join bwin and Party, two Entain brands that are on the cusp of securing an entry into the regulated Dutch market. The commitment to this particular market demonstrates a broader commitment by Entain to ween off unregulated and grey markets. When the company rebranded from GVC Holdings, this was one of the key tenets it inscribed in its new identity. This was confirmed by Entain boss, CEO Jette Nygaard-Andersen who said:
This transaction further underpins our growth strategy of operating in attractive regulated markets.Entain CEO Jette Nygaard-Andersen
For its part, BetCity and CEO Melvin Bostelaar have been equally excited and welcomed the opportunity arguing that the arrangement should be settled by the end of 2022. Meanwhile, the initial consideration of $312.9 million should be paid upon completion.
Settling Final Payments and Transactions
The remainder of the payment will be contingent on how BetCity performs during FY22. Another contingent payment will be released in 2024 and will be based on BetCity’s EBITDA for FY23 multiplied by 10. Nygaard-Andersen added:
“We are delighted that BetCity is joining Entain and are excited by the significant opportunities in the newly regulated Dutch market.”Entain CEO Jette Nygaard-Andersen
For his own part, Bostelaar said that the company was excited to be joining forces with a world-class brand. “Entain’s market-leading platform, technology, established brands, and global scale provides a fantastic opportunity to expand and enrich our customer offering,” the executive added.
What follows now, Bostelaar, is a bright future between the two companies that BetCity was looking forward to.