Entain makes Dutch push with £257m BetCity deal
Entain has agreed to acquire the entire share capital of BetEnt B.V., which trades under the BetCity.nl name, from Sports Entertainment Media B.V. for an initial consideration of €300m (approximately £257m and deferred contingent consideration of up to €550m (approximately £472m).
BetCity is one of the Netherlands’ leading online sports betting and gaming operators. Headquartered in Amsterdam, BetCity received an online sports betting and gaming licence from the KSA (Kansspelautoriteit), the Dutch Gaming and Gambling Authority, in October 2021.
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. This 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 licence to operate in the Netherlands – now expected during the latter part of this year as the KSA has recently requested additional documentation as part of the ongoing application process. The combination of BetCity’s local expertise, strong brand and large diverse user-base, with Entain’s global scale and market-leading platform will provide customers with a broader offering of engaging products, fresh content and new experiences.
The total consideration payable on current expectations is €450m (approximately £386m). However, dependent on the performance of BetCity, the maximum consideration is capped at €850m (approximately £729m). The combination is expected to deliver approximately €28m (approximately £24m) of cost synergies, predominantly from technology, content and royalty benefits, by the end of 2026.