Entain Plc announced Monday it has bought the owner of Canadian bookmaker Sports Interaction, a move that comes as global gambling firms are eagerly eyeing opportunities to operate in the Great White North.
U.K.-based Entain said it acquired Avid Gaming from Middlebrook Investments Ltd. for $300 million.
Avid Gaming is headquartered on the island of Jersey and owns Sports Interaction, which will now join Entain’s other Canadian-aimed sports betting and gambling brands such as bwin and partypoker.
“Sports Interaction is the leading Canadian sports betting and gaming brand and is aligned perfectly with our own ambitions of great customer service and ambitious growth, coupled with an unwavering commitment to sustainability,” said Jette Nygaard-Andersen, Entain’s CEO, in a press release. “It is highly complementary to our existing operations in Canada, and the combination of its local expertise and Entain’s powerful platform will provide customers with an unrivalled range of exciting and engaging products in this fast-growing market.”
Welcome to the home team, Avid Gaming and @SIASport! ????????
— Entain (@EntainGroup) February 7, 2022
We're really pleased to be joining forces with Canada’s leading online sports brand and welcoming them to the Entain team. ????????
Full release: ????https://t.co/Jic4DKvaq2 #ItsYourGame
Avid Gaming exclusively licenses the Sports Interaction trademark and provides certain gambling-related services to the Mohawk Council of Kahnawà:ke, which is located just south of Montreal. A wholly-owned entity of the council operates Sports Interaction in Canada, and Entain says it will continue “supporting the socioeconomic efforts” of the Mohawks via the relationship between the sportsbook and that entity, Mohawk Online.
“Kahnawà:ke is well known in the gaming industry, not only for our internationally recognized jurisdiction through the Kahnawà:ke Gaming Commission, but also for our socio-economic initiative, Mohawk Online,” said Kahsennenhawe Sky-Deer, Grand Chief of the Mohawk Council of Kahnawà:ke, in the release. “This new partnership between Entain and the Mohawks of Kahnawà:ke is mutually beneficial, and brings with it prime opportunity for bolstering our self-sufficiency through the continuing success of Sports Interaction.”
According to Entain, Sports Interaction generated gross revenues last year of $76 million, a 40% increase over 2020. Profit for the business before tax and after the contribution to Kahnawà:ke was $17.4 million in 2021, the release said.
More Canadian content
Entain’s acquisition is consistent with the global gambling firm's Canadian ambitions as well. In particular, the company is hoping to do more business in Ontario, the country’s most populous province and the future home of a competitive market for internet-based sports betting and casino gambling.
Ontario's new iGaming market is scheduled to open on April 4. When it launches, it will be the first of its kind in Canada and will allow private-sector operators of online sportsbooks and casinos to legally take bets in the province.
“Canada is a highly attractive and fast-growing sports betting and gaming market,” Entain said in its release. “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 that the acquisition of Avid Gaming (another name for which is Deis Ltd.) is anticipated to drive around $15 million in synergies in 2023. The company said the purchase was paid out of its existing financial facilities.
“We are delighted to be joining forces with Entain, which is an exceptional company combining world-class brands, strong leadership and a winning strategy,” said Will Golby, CEO of Avid Gaming, in the release.
