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Entain is trying to respond by simplifying itself. It has agreed to sell an initial 20% stake in Entain CEE for €425 million, implying an enterprise value of about €2.1 billion. The company says proceeds from the transaction and any future exit will be used to reduce debt and, subject to leverage objectives, return excess capital to shareholders.
The strategy is less about rapid growth and more about showing that a cash-generating business with falling debt and improving operations is undervalued.
By looking at four major gambling companies – Entain, Flutter, DraftKings and MGM Resorts International – it becomes clear why the sector should not be treated as a single trade.
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The New Zealand Department of Internal Affairs (DIA) has recovered NZ$11.5 million (US$6.6 million) in an investigation into compliance across the pokies sector.
The regulator of gambling in New Zealand announced on Friday that the funds returned by operators will be directed towards community organisations.
Under Section 106 of New Zealand’s Gambling Act 2003, a class 4 licence holder, also known as a “corporate society” by the regulator, “must apply or distribute the net proceeds from class 4 gambling only to or for an authorised purpose specified in the corporate society’s licence”.
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Playtech revenue increased 10% year-on-year in its H1 to €425.1 million, powered by what the company described as “exceptional growth” for its B2B business in North America.
Revenue from the US and Canada surged 161% year-on-year to €56.9 million.
The company’s adjusted EBITDA also rose 77% to €162.5 million, with B2B accounting for €128.1 million of that total.