Entain boosts global presence with £174 million acquisition of Avid Gaming

The parent company of Ladbrokes and Coral has increased its global reach with the £174 million purchase of Avid Gaming, owner of Canadian online sports betting brand Sports Interaction.

Entain said the acquisition would complement its existing business in Canada, where its Party and bwin brands already operate.

While the United States has become a major focus for gambling operators since the Supreme Court lifted the federal ban on sports betting in 2018, the Canadian market has also become the focus of attention.

Ontario is in April set to become the first province in Canada to launch a liberalised regulated online sports betting and gaming market, which is forecast to become one of the biggest in North America.

Entain has applied for an Ontario licence and said its latest acquisition provided "an excellent opportunity to drive further growth".

Sports Interaction has experienced rapid growth in recent years, according to Entain, with gross revenues in 2021 increasing by around 40 per cent year-on-year to approximately £44m. The business generated ebitda (earnings before interest, taxation, depreciation and amortisation) of around £10.4m and pre-tax profit of £10.1m in 2021.

Entain chief executive Jette Nygaard-Andersen said: "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.

"It's 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."

North America has been the focus of huge attention from the gambling industry. Wagering figures for the state of New York, where Entain operates through its BetMGM joint venture, broke records last month with $1.6 billion (approx £1.18bn/€1.4bn) being gambled despite the market only opening up on January 8, beating the previous best of $1.3bn set in New Jersey in October.

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