An Entain strategic review found that the global sports betting and gaming company could review options for potentially selling off Georgia gaming brand Crystalbet and should focus more on its U.S. market, where it co-owns BetMGM.
Following a tumultuous 2023 and reports of potential sell-offs, the Capital Allocation Committee began in January evaluating Entain’s portfolio of markets, brands, and verticals, including Coral, Partypoker, Ladbrokes, and bwin.
“I am delighted that the Capital Allocation Committee has concluded its strategic review of our portfolio,” Etain chairman Barry Gibson said. “Whilst we still have more work to do to improve our operational performance, the Board is pleased with the progress Entain is making so far in 2024 in line with our strategy.”
That work includes doing something with Crystalbet, which Entain acquired part of in 2018 before purchasing the remaining percentage in 2021.
The review determined that sports betting and gaming asset is “non-core” to Entain, and strategic alternatives include “interest already received from potential acquirers," which weren’t in by the company.
Market competitiveness
The committee believes Entain’s assets, brands, capabilities, and geographic footprint ensure long-term growth.
“The Group has the core strengths, brands, and products to be competitive across its markets and continues to be a global leader in betting and gaming,” Gibson said.
The committee also backs the company’s strategy of focusing on organic revenue growth, margins, and winning in the U.S. market. Entain owns a 50/50 stake in U.S. sports betting and iGaming brand BetMGM, which owned a 14% market share in operating jurisdictions in 2023.
The committee said the “delivery of the product roadmap for BetMGM is progressing well, including recently launched MLB and NBA sports betting markets supported by Angstrom's unique capabilities, particularly in parlay products.”
Other highlights
The review considered developments and progress made by Entain, including Brazil returning double-digit growth revenue in the second quarter, thanks to improved customer acquisition and retention in the market.
The committee also highlighted the level regulatory playing field in the U.K. expected to bring returned growth later this year.
In the U.S., the Nevada Gaming Commission approved Entain’s applications and subsidiaries without limitation last week.
Entain announced that the Capital Allocation Committee will continue to “regularly review strategic progress and consider options to maximize shareholder value, including ongoing oversight of all significant aspects of capital commitments.”
“The Board looks forward to updating the market further on its progress at the interim results in August,” Gibson said.
