The recent deal with MaxBet supports Flutter’s strategy of expanding its business in the regulated Serbian market and the wider Balkans region. This transaction also provides Flutter with the option to acquire the remaining 49% of MaxBet in 2029.
MaxBet is a leading operator in Serbia, holding approximately 20% of the online market share. The company employs over 2,400 staff and generated €145.0m in regulated revenue and €32.0m in adjusted EBITDA in the 12 months leading up to June 2023.
The completion of the transaction is subject to customary regulatory clearances and is expected to close in the first quarter of 2024.
Flutter’s CEO, Peter Jackson, expressed excitement about the addition of MaxBet to their portfolio, emphasizing the company’s strategic priority of acquiring and building strong positions in regulated markets. Jackson believes that MaxBet presents a compelling opportunity to combine local expertise with the Flutter Edge to drive accelerated growth.
While Flutter’s M&A activity in 2023 has been relatively quiet, the company remains committed to expanding its business through acquisitions. In 2022, Flutter made notable acquisitions such as Sisal, an Italian online gaming and lottery operator, and Tombola, a bingo operator, to strengthen its positions in regulated markets.
The impact of these acquisitions is already visible in Flutter’s financial results. The Sisal deal helped drive up revenue in Italy, with Turkey also performing strongly due to Sisal’s involvement in the national lottery. In the first half of 2023, Flutter reported a 41.9% increase in total group revenue compared to the same period in the previous year, along with a net profit of £128.0m and a 76.3% rise in EBITDA.
Entain CEE, another major player in the gambling industry, is also expanding its presence in the Central and Eastern Europe (CEE) region. The joint venture between Entain and Emma Capital recently acquired Polish sportsbook operator STS Holding for £750m, following the acquisition of Croatia’s SuperSport in August 2022. Entain CEE has expressed its ongoing growth plans for the CEE region.
