Entain, a leading global sports betting, gaming, interactive entertainment operator, and 50% owner of BetMGM in the US, announced today that it acquired Deis Ltd., the owner of Avid Gaming and Sports Interaction, for CAD300 million from Middlebrook Investments Limited.
The acquisition is a strategic choice as Canada is a highly attractive and fast-growing sports betting and gaming market. On April 4, 2022, Ontario will be the first province to launch online sports betting, which will open the market up to an influx of major sportsbooks. Entertain has already applied for an Ontario license. Because Sports Interaction is the leading Canadian sports betting and gaming brand, the acquisition sets the company up for further growth in the new market.
“No other company of its scale consistently delivers with so many well-executed, localized approaches to the same level of customization and detail,” said Will Golby, CEO of Avid Gaming, who will be staying on to aid in the transition. “We are delighted to be joining forces with Entain.”
Entain will also continue supporting the socioeconomic efforts of the Mohawks of Kahnawà:ke. Sports Interaction has a unique, exclusive relationship with Mohawk Online, which invests any generated revenue back into the community to support a better future for the people of Kahnawà:ke. Under the United Nations Declaration on the Rights of Indigenous Peoples, the revenues are put towards cultural and language programs, healthcare, schools, Covid-19 relief efforts, and other public services. At least 50% of Avid Gaming employees in Kahnawà:ke are Mohawk.
Welcome to the home team, Avid Gaming and @SIASport! 🎉👏
We're really pleased to be joining forces with Canada’s leading online sports brand and welcoming them to the Entain team. 🇨🇦
— Entain (@EntainGroup) February 7, 2022
Financial Expectations Of The Acquisition
Sports Interaction has seen rapid growth in recent years, with gross revenues in 2021 increasing 40% year-over-year to CAD76 million. The combination of the two companies is expected to deliver approximately CAD15 million of synergies in 2023 from technology, content, and procurement benefits.
Additionally, Ontario is expected to be one of the largest markets launching in North America in 2022 and will lead the way for other provinces. Analysts are predicting the province will be a sports betting market of CAD14 billion and CAD1.1 billion in operator revenue annually. Operators are working to establish footholds in Canada, which is predicted to generate a handle of more than CAD36.5 billion and revenue more than CAD2.5 billion. Entain’s acquisition of Sports Interaction sets it up to engage new users as the markets open.