(Reuters) – British gambling firm Entain has hired advisers to oversee the possible sale of several of its overseas brands, the Financial Times reported on Thursday.
These brands include Netherlands-based BetCity, which the gambling firm had bought last year, FT added.
The Netherlands, last year proposed a plan for tighter deposit limits from the second quarter, which is expected to hit Entain’s annual revenue and profit, the company said earlier this month.
A local offshoot of Ladbrokes in Australia, Sweden-based Enlabs and Georgia-based CrystalBet are other brands that are not integrated into Entain’s main tech platform and under review, the report said.
Wall Street boutique advisory Moelis is advising Entain’s board and the group’s recently formed capital allocation committee, and any disposals will be of brands that are not integrated into the company’s technology platform, which makes them easier to sell, the FT added.
Entain, like other gambling firms, gained from a rise in online betting during the pandemic, but stiffer regulations in its main markets have hurt its bottom line.
The UK, the gambling firm’s largest market, is expected to put out a review this year, which is said to include a stake cap on slots at 5 pounds ($6.37) and increased affordability checks.
Entain expects its core profit to incur a 40 million pounds hit in 2024 from the regulatory moves in the UK and Netherlands.
($1 = 0.7818 pounds)
(Reporting by Urvi Dugar and Radhika Anilkumar in Bengaluru; Editing by Savio D’Souza and Sonia Cheema)
Comments