The new deal for Amsterdam-based BetCity, which started at CA$404m (£257m) but could cost CA$1.142bn (£727.49m) based on BetCity’s success in 2022 and 2023, is another sign the UK-based business wants to take advantage of new markets. Entain is already active in more than 20 countries from five continents around the world.
In February, Entain bought Avid Gaming and got Sports Interaction, a major Canadian online sports betting brand, as part of the deal. To compare the moves, the purchase of Avid Gaming and Sports Interaction cost Entain CA$300m (£174m), with the two deals potentially costing more than CA$1.36bn (£870m) in total.
The first payment in the BetCity agreement is about CA$404m (£257m) but, depending on BetCity’s financial performance in the 2022 and 2023 financial years, Entain could make contingent payments of CA$760m (£480m), which would take the cost of the deal up to around CA$1.158bn (£737m). There could be a further CA$67.25m (£42.73m) based on the success of the partnership between both brands and a smooth transition of BetCity to the Entain platform.
The deal is good news for Avid Gaming and could mean a stronger, more diverse Canadian online betting scene for players to enjoy.