Entain, the British gambling group, recently agreed to acquire BetCity, an online sports betting and gaming operator. The deal values up to 850 million euros or $887 million. This move aims to strengthen its presence in the Dutch market.
According to Entain, BetCity’s offering was highly complementary to its bwin and Party brands. These are awaiting approval to operate in the Netherlands.
Entain owns the Ladbrokes and Coral betting firms. They stated that the acquisition of BetCity from Sports Entertainment Media B.V. would involve an initial consideration of 300 million euros. Additionally, there would be a deferred contingent consideration of up to 550 million euros.
Jette Nygaard-Andersen, CEO of Entain, stated that this transaction further supports their growth strategy of operating in attractive regulated markets.
Entain said that Melvin Bostelaar, CEO of BetCity will remain in the company. The deal is expected to close in the second half of this year.
The gambling group mentioned that this year, they are utilizing excess cash for acquisitions instead of shareholder payouts. This decision follows takeover approaches from U.S. rivals DraftKings and casino operator MGM in the previous year, though no deals materialized.
For reference, $1 is equivalent for 0.9582 euros.