Ladbrokes owner Entain makes Dutch push with €850m BetCity deal

Entain, which owns the Ladbrokes and Coral betting firms, said it would acquire BetCity from Sports Entertainment Media B.V. for an initial consideration of €300m.

British gambling group Entain agreed on Tuesday to acquire online sports betting and gaming operator BetCity in a deal worth up to €850m to build its presence in the Dutch market.

Entain said BetCity's offering was highly complementary to its bwin and Party brands, which are awaiting approval to operate in the Netherlands.

Entain, which owns the Ladbrokes and Coral betting firms, said it would acquire BetCity from Sports Entertainment Media B.V. for an initial consideration of €300m plus a deferred contingent consideration of up to €550m.

"This transaction further underpins our growth strategy of operating in attractive regulated markets," Entain Chief Executive Officer Jette Nygaard-Andersen said.

BetCity's CEO Melvin Bostelaar will remain with the company, Entain said. The deal is expected to close in the second half of this year.

The gambling group had said it was now using excess cash on acquisitions this year rather than shareholder payouts after the bookmaker in the past year saw U.S. rival DraftKings and casino operator MGM make takeover approaches for its business, though neither resulted in a deal.

• Reuters