Isle of Man-based gambling giant Entain announced Thursday it has sealed a deal for the acquisition of the esports betting and entertainment company Unikrn. Entain, previously known as GVC Holdings, owns several major betting companies, including Ladbrokes, Sportingbet, Bwin, and partypoker. The international sports wagering and gambling firm offers its products on 27 regulated markets but works towards expanding its operations into 50 more.
Yesterday, Entain agreed to purchase the Washington-based start-up esports wagering platform but is yet to disclose any particulars regarding the new deal’s financial terms. Unikrn is a leading provider of esports betting services on the US market, so much so it has even received backing from celebrity investors like actor Ashton Kutcher and billionaire entrepreneur Mark Cuban.
Entain has chosen Justin Dellario as the headman of its new esports betting division. Dellario was formerly of Twitch where he held the position of General Manager for the live streaming platform’s Original Content, Broadcast Solutions Engineering, and Interactive Studio Businesses. Entain’s Chief Executive Officer Jette Nygaard-Andersen is confident the deal will enable the British company to triple its business on US soil.
The UK betting giant expects esports and social gaming to contribute $20 billion in addressable market share in the long term. CEO Nygaard-Andersen anticipates an addressable market of $160 billion for sports wagering, interactive gaming, and iGaming. Video gaming is a field the CEO sees great potential in.
Esports Have a Fan Base of 450 Million People, Entain’s CEO Says
Entain plans to create a sportsbook for wagering on professional matches, along with a skill-based betting platform for amateur players. Nygaard-Andersen declined to provide any details on the terms of the deal. She disclosed, however, the gambling company could spend approximately $69 million (£50 million) on its esports strategy, and that includes the newly sealed deal with Unikrn.
According to Nygaard-Andersen, esports are particularly popular with millennials and have attracted a fan base of 450 million people worldwide. The news of the deal comes shortly after Entain published its second-quarter results that exceeded expectations. The second quarter saw BetMGM, Entain’s joint enterprise with MGM Resorts, earn a second place on the US sports wagering and online gaming market.
CEO Nygaard-Andersen estimates the $6 billion sports betting and online gaming market would grow to $32 billion by the year 2030, a prediction many gaming analysts support. In January this year, MGM Resorts proposed to acquire Entain for approximately $11 billion but the UK company rejected the offer, as generous as it was.
But according to industry insiders, the global hospitality and entertainment giant has not yet lost interest in purchasing Entain, especially considering the scale of the latter’s technology and international market exposure. Entain’s CEO refused to discuss the status of potential future talks.
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Olivia Cole
