Flutter Entertainment, the parent company of Fanduel and Paddy Power, has made a significant move into the Balkan market by acquiring an initial 51% stake in Serbia's prominent sports betting and gaming operator, MaxBet.
The transaction, valued at €141.0 million, marks Flutter's strategic expansion into this fast-growing region.
Flutter's acquisition of MaxBet aligns perfectly with its overarching strategy, which focuses on entering burgeoning, regulated markets. In these markets, Flutter combines local expertise with its global pricing and technology prowess for a synergistic advantage.
Serbia's betting market, estimated at 700 million euros, presents an attractive opportunity for Flutter. Despite its considerable size, online penetration in the Serbian market remains relatively low, at around 35%. Moreover, the market is forecasted to experience an impressive online compound annual growth rate of approximately 15% until 2025.
MaxBet, the target of this acquisition, reported pro forma fully regulated revenue of 145 million euros for the year ending in June, with a significant portion, 44%, generated online. Additionally, MaxBet has a notable presence in neighboring regions such as Bosnia, Montenegro, and North Macedonia.
Flutter Entertainment's CEO, Peter Jackson, expressed his optimism about the acquisition, stating, "We believe MaxBet is an excellent opportunity to replicate the success we have achieved in markets like Georgia, India, and Italy," referring to Flutter's track record of similar acquisitions in these regions.
Flutter Entertainment, the world's largest online betting company, derives the majority of its revenue, 78%, from its core divisions in the U.S., Australia, the United Kingdom, and Ireland. Present in over 100 countries, Flutter continues to expand its global footprint.
This acquisition signifies Flutter's strategic expansion into the Balkan region, leveraging the potential of the Serbian betting market and MaxBet's strong presence in the area.
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