Entain Underpins Growth Strategy with BetCity Acquisition
Leading iGaming operator Entain has announced the completion of its acquisition of Dutch online sports betting operator BetCity.
The deal, worth up to €450m, will see Entain pay an upfront fee of €300m. The balance will be paid by 2024 after “BetCity’s financial performance for 2022 is confirmed” and will be based on 10x BetCity’s EBITDA for 2023. Payment will be concluded with a final fee of €50m “on delivery of synergies and successful migration to the Entain platform.”
With the deal finalized, Entain can now gain market access into several jurisdictions where BetCity currently operates, especially the Netherlands. BetCity is one of the first ten operators that were licensed in the country and has since grown to be a leader controlling 20% of the Dutch iGaming market share in the Q4 of 2021.
Entain brands had not been approved to offer their services in the Netherlands due to the country’s mandatory cooling-off period for brands that had previously been accepting bets from Dutch players before the market got legalized.
The draft rule published by the Dutch Gaming Authority (KSA) stated that “to be eligible for an online gambling license, an operator must have refrained from offering online games of chance to Dutch consumers for two years.”
Although Entain’s cooling-off period ended last year, the brand has still not been able to secure licenses for its legacy brands.
We are pleased to have completed the acquisition of BetCity. The combination of BetCity’s local expertise and strong brand, alongside Entain’s global scale and market-leading platform, provides customers with an enriched and broader offering of engaging products, fresh content, and new experiences.