Entain completes Avid Gaming acquisition
Last Updated on by James King
After warding off interest from DraftKings at the end of last year following a sensational $22 billion bid from the US operator, as far as Entain are concerned, it is very much a ‘business as usual’ attitude for the UK-owned online gambling conglomerate.
As a result, they have started 2022 with a definiteness of purpose that has seen them push ahead with their own acquisition strategy, successfully completing the purchase of Canadian-owned operation Deis Ltd – also known as Avid Gaming.
With all things considered, it was a somewhat modest $300 million (CAD)/£174 million (GBP) taken to complete the deal, which is a relatively small fee compared to some of the industry’s recent deals.
Expansion into the Canadian market
Such a deal marries perfectly well with Entain’s application for an Ontario license after the Canadian province passed legislation recently to allow online gambling companies to apply for licenses.
First and foremost, a sports betting company, Avid Gaming owns the brand Sports Interaction, which is the country’s premier company in this niche.
Following the takeover, a spokesperson from Entain revealed: “Avid Gaming owns Sports Interaction, Canada’s leading online sports betting brand.
Despite Deis being Canadian-owned, its main operations are based in Jersey, while it also has offices in Ireland, as well as the Mohawk Territory of Kahnawake; a well-known native American Indian region. Now with the approval of online gambling in the Ontario province, it means that this deal provides Entain with the ideal platform.
“Canada is a highly attractive and fast-growing sports betting and gaming market. Together with Entain’s application for an Ontario licence, this acquisition provides an excellent opportunity to drive further growth, in line with the group’s growth and sustainability strategy,” Entain added.
Further deals in the pipeline?
It was a relatively quiet 2021 for Entain as far as merger and acquisition activity was concerned, however, this latest manoeuvre could signal that the corporation has strategic plans in place to hit key markets over the next couple of years.
Canada certainly offers a significant amount of promise, while the US is primed to leap into pole position over the next couple of years.