Global sports betting and gaming group Entain has confirmed the acquisition of Canada’s leading online sports betting brand, Sports Interaction, in a deal reported to be valued at C$300m (€207m).
Sports Interaction was actually acquired through Entain’s purchase of Avid Gaming, which exclusively licenses the Sports Interaction trademark and provides proprietary online and gaming products to the Mohawk Council of Kahnawake.
The Covid-19 pandemic period has seen Sports Interaction enjoy a sustained period of good growth, with 2021 revenues rising by 40% to C$76m (€52.4m) generating EBITDA of C$18m (€12.4m).
Entain’s plan is clearly to inject a number of key operational synergies, and further improve profitability, but any air of over-optimism must be set against a historical backdrop in which Sports Interaction operated in a virtually tax-free environment, and with no competition. This comfortable situation will be significantly changed following this April’s legalisation of online sports betting in Ontario.