Entain Enters Dutch Market With €850m BetCity Deal

  • Entain has acquired Dutch sports betting, iGaming firm BetEnt and its BetCity brand
  • Execs expects the BetCity deal to bring in €28m ($29.2m) of cost synergies by 2026
  • Entain described BetCity as “highly complementary” to its brands bwin and Party
  • Since launching in October, BetCity has secured a 20% share of the Dutch market
Entain logo on phone
Entain has upped its European ante through the €850m ($887m) acquisition of Dutch iGaming and sports betting firm BetCity. [Image: Shutterstock.com]

Entire share capital acquisition

iGaming and sports betting giant Entain has announced its entire share capital acquisition of BetEnt and its flagship brand BetCity from Dutch firm Sports Entertainment Media.

an initial consideration of €300m ($313m)

The cash-plus-earnings-related deal, announced Tuesday, will see Entain pay an initial consideration of €300m ($313m) and a deferred contingent consideration capped at €550m ($573m) for the online betting and iGaming firm. Worth a total of €850m ($887m), the deal is expected to close during the second half of 2022.

According to a company news release, Entain expects the acquisition of BetCity to bring in approximately €28m ($29.2m) of cost synergies by the end of 2026, mostly derived from technology, content, and royalty benefits.

Attractive growth indicators

The FTSE 100 operator described BetCity’s offering as “highly complementary” to its iGaming and sports betting brands bwin and Party, which Entain has confirmed are still awaiting approval to operate in the Netherlands.

Entain CEO Jette Nygaard-Andersen said the deal is part of the firm’s “growth strategy of operating in attractive regulated markets.” She added that her firm was “delighted” by the BetCity addition and “excited by the significant opportunities in the newly regulated Dutch market.”

The Netherlands’ legal iGaming and sports betting market launched in October 2021. Under its BetEnt parent, BetCity was one of the first ten operators to receive an online sports betting and gaming license from the KSA (Kansspelautoriteit) in time for the market launch.

According to Entain, BetCity has thrived since gaining its Dutch license, experiencing fast growth. So much so, it has become a market leader, with around 20% market share during Q4 2021.

Entain on 2022 buying spree

Entain, formerly known as GVC Holdings, is doubling down on expansion plans this year. In April, with an eye on the lucrative Ontario sports betting and iGaming market, Entain acquired the holding company of Canadian betting operator Sports Interaction in a deal worth CAD$300m (US$236m).

Nygaard-Andersen affirmed that the Sports Interaction acquisition would complete Entain’s existing Canadian presence and allow it to leverage the newly acquired firm’s local expertise.