Entain Acquires BetCity for €450 Million

In January 2023, the British gambling company Entain acquired the Dutch gambling provider BetCity for €450 million. The deal, signed in June 2022, was delayed due to investigations and penalties imposed by the Dutch gambling authority, Kansspelautoriteit, on BetCity. Consequently, Entain is now seeking compensation from the former owners of BetCity.

Allegations Against BetCity Owners

Entain accuses BetCity’s former owners of deliberately concealing ongoing regulatory investigations by Kansspelautoriteit to avoid jeopardizing the acquisition. Documents signed during the acquisition process confirmed no ongoing investigations, despite probes initiated in April and May 2022.

Fines Paid by BetCity Owners

BetCity incurred fines of €400,000 for non-compliant marketing emails and €3 million for inadequacies in anti-money laundering and counter-terrorism financing measures. Although the previous owners paid the fines, Entain believes they diminished BetCity’s value, leading to the compensation claim.

The outcome of Entain’s lawsuit against BetCity’s former owners remains uncertain, with no specifics provided on the compensation amount or comments from Entain.