Entain Seeks Acquisition of Poland’s STS
Entain is bolstering its market share in Central and Eastern Europe with the acquisition of STS Holdings, Poland’s largest sports betting operator.
Asset management group and Entain investor, Eminence Capital, has criticised the M&A strategy of the Group as 'perplexing' and' illogical'.
POLAND OPERATOR NEWS
UK - Social media giants are being urged to cooperate with the betting and gaming industry to limit marketing seen by young people and problem gamblers. Standards body, The Betting and Gaming Council, want to implement new measures for online adverts but are being undermined by social media platforms.
BGC Chief Executive, Michael Dugher, has written to Culture Secretary, Lucy Frazer MP, urging her to put pressure on social media platforms as part of the Government’s drive to tackle problem gambling among the young in particular. Launching the recent Gambling White Paper, Mrs Frazer proposed measures that looked at the under-25 age group.
In his letter, Mr Dugher explained that an earlier BGC drive saw social media platforms allow the public to opt-out from receiving betting and gaming advertising. However, members say they need further cooperation to deliver other measures – in particular for those who have signed up to the industry self-exclusion tool GAMSTOP. The industry wants a ‘marketing suppression scheme’ which it says would stop 300,000 people registered to GAMSTOP from receiving direct marketing. on social media.
ARMENIA – Digitain has welcomed Martin Martirosyan to its workforce as Group Deputy CEO. Martin, who has a Ph.D in Economics, has corporate background in business, products, and risk management.
Digitain Founder, Vardges Vardanyan, commented: “We are delighted for Martin to join our senior leadership team. Our business continues to grow strategically across multiple regulated markets across the globe. Martin, who has held senior corporate positions with HSBC, brings that wealth of experience as our group of companies expands and we service more B2C partner operators.”
HOLLAND – SUZOHAPP has introduced the IVT-9000, a new instant ticket vending machine for lottery operators. The IVT-9000 has a flexible platform and different dispenser options (up to 20 dispensers). In addition to product selection, its large monitor can display any kind of multimedia and promotional content.
“We can make different sizes, all with the 32" full HD Elo touch monitor for product selection and advertising display, and a software platform which links all machines online,” commented Tim Kennedy, Vice President of Sales Europe.
P16 WIRE / PULSE / INSIGHT / REPORTS
Entain CEE is set to acquire STS Holdings, the largest sports betting operator in Poland. Listed on the Warsaw Stock Exchange, the offer is priced at PLN 24.80 per share, valuing the equity value of STS at approximately £750m and an enterprise value of around £690m. Te net cash consideration payable by Entain is £450m.
Entain CEE is Entain’s venture in Central and Eastern Europe together with its partner EMMA Capital. Entain and EMMA will fund the offer in proportion to their current shareholding in Entain CEE (75/25 per cent respectively). Entain will fund its proportion of the consideration via an equity placing and a separate retail offer through the PrimaryBid platform.
STS’s CEO Mateusz Juroszek and his father Zbigniew Juroszek, who through their respective family foundations collectively hold approximately 70 per cent of STS’s share capital, have entered into a binding agreement to irrevocably accept the offer. Following completion, the Juroszek Foundations will re- invest a proportion of their proceeds into Entain in return for a 10 per cent economic stake in Entain CEE.
Entain commented: “CEE offers an exciting opportunity in new high-growth and regulated markets in line with the Group’s strategy, as outlined at the launch of Entain CEE with the
UK OpenBet acquires Neccton
OpenBet has acquired Neccton, a supplier of responsible gaming, anti-money laundering and fraud detection technology, in a bid to accelerate its player protection offerings and expand its support to the betting industry.
OpenBet serves an extensive roster of customers including FanDuel, DraftKings, Entain, Sky Bet, British Columbia Lottery Corporation, and Loto Québec. Neccton brings over 15 years’ experience in developing software and services for the gaming sector under the leadership of Dr Michael Auer and Andreas Schneeberger.
Jordan Levin, CEO of OpenBet, stated: “Since the birth of online sports betting, OpenBet has been at the forefront of creating
compelling and safe entertainment experiences built on solid technology foundations. We thrive on solving the most complex challenges our industry presents, and OpenBet’s acquisition of Neccton takes our commitment to player protection and AML to the next level.”
Dr Michael Auer, Managing Director of Neccton, commented on the acquisition: “We have always held the belief that many of the world’s biggest problems can be solved through a potent combination of scientific research and advanced software. It’s an existential imperative for our industry. Our vision is to have Neccton technology deployed by the industry’s leading brands and shaping regulatory standards.”
acquisition of SuperSport in August 2022.”
Eminence Capital, an asset management group which has built up a shareholding of 13.2m shares since 2020 – roughly 2.1 per cent of the plc - has questioned the M&A strategy of the group. An open letter published by CEO Ricky Sandler criticised the board of Entain for allowing a £600m bookbuild to fund the acquisition of STS Group, through the issuance of new shares, which represents approximately eight per cent of its market capitalisation.
“Tis approach is perplexing on many levels. While we can support the company pursuing seemingly rational acquisitions, funding them with highly undervalued equity is an empire building, shareholder value destroying strategy. Further, that the Entain board has previously rejected multiple takeover approaches at materially higher prices on the grounds that those offers undervalued the company, but then turn around and issue equity at depressed prices for an asset that is at best a 'nice to have' is illogical.”
Mateusz Juroszek will remain as CEO of STS and join the board of Entain CEE: Mateusz has been CEO of STS since 2012 and has been critical in driving STS’s growth over the last decade. Radim Haluza, CEO of Entain CEE, will continue to oversee STS and SuperSport.
UK
Te recent acquisition of UK lottery firm, Camelot, has helped European lottery giant Allwyn Entertainment report consolidated revenue of €1.64bn for the first quarter, marking an increase of 80.1 per cent year-on-year.
Gaming revenue totalled €1.58bn, up 81.4 per cent. In the UK, Allwyn’s results fell by 1.9 per cent to €1.01bn. Te Italian market dropped by 0.6 per cent to €584m, while Austria generated €388.4m, up 19.3 per cent.
Te Czech Republic market produced €125.4m, an increase of 17.2 per cent, whilst Greece and Cyprus accounted for €552.9m, an increase of 14.6 per cent.
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