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Entain, who are one of the largest gambling groups on the planet, have a habit of acquiring brands from the online casino and sports betting arenas. And now, they’ve added another of the latter to their impressive portfolio after purchasing BetCity, a sports betting operator out of the Netherlands.
It’s an exciting deal that Entain have brought to pass, as they will initially purchase BetEnt, which operates and trades as BetCity, for EUR300 million. There are suggestions that, in the end, the total price payable could rise as high as EU850 million due to a deferred contingent consideration worth up to EUR550 million.
However, Entain expects that the deal will cost a total of EUR450 million, with BetCity moving from the control of Sports Entertainment Media BV to arguably the world’s most impressive roster of sports betting and gaming brands.
On the face of it, the purchase makes sense when considering other prominent brands like bwin have flourished under the umbrella. So, it’s likely that BetCity will quickly establish itself as the go-to sports betting operation in the Netherlands before levelling up as one of the top offerings in Europe. At the same time, it will strengthen Entain’s presence in Europe.
At the time of writing, it’s expected that the deal for BetCity will be wrapped up and finalised in the second half of the year. And the funding Entain will use to complete the purchase is coming from their cash reserves, and the company will also call on its credit facility if needed.
BetCity, which is based in Amsterdam, took steps to prepare itself to operate legally in October 2021 when they acquired the relevant sports betting and gaming licenses from Dutch authorities. Of course, this was a significant advantage for Entain on paper, as it means that after taking control of the brand, operations can continue as usual.
A statement to announce the deal for Entain to purchase BetCity read: “The newly regulated Netherlands online market is highly attractive and fast-growing across both sports betting and gaming. Since its licensing in October 2021, BetCity has delivered rapid growth, establishing a leading position with approximately 20 market share during the fourth quarter of 2021. The acquisition will create a strong market operator with significant growth opportunities, in line with the group’s strategy.
“BetCity’s offering is highly complementary to Entain’s bwin and Party brands which are awaiting approval for a license to operate in the Netherlands.”
What is also an interesting angle for Entain after acquiring BetCity is that they are now seeking Dutch approval for licenses to operate for two of their current brands in bwin and Party. The expectation is that this will happen at some point before the year is out. And again, it’s only going to help strengthen Entain’s operations in the Netherlands and in Europe. It will only serve to reaffirm their position as a global brand in the sports betting and casino space.
