Arguably the biggest online gambling group in the world, Entertain (formerly GVC Holdings) is seeking to make another acquisition through its Bwin Holdings subsidiary.
At the turn of the year, Entain rebuffed several bids from US casino and entertainment behemoth MGM have been looking to add Entain’s large number of over 25 brands to its portfolio and in a single move position it self as the leading US online gambling company. This, had it been successful would have sky-rocketed MGM into the stratosphere creating the biggest gambling entertainment company in the world, in both the land-based and on line gambling industries.
It seems Entain had other plans, after knocking back one last offer of $11 billion from the US company.
Simply a month later and Entain is currently going on the attack, continuing with their aggressive expansion plans. The company under the spotlight is the Baltic online gambling whale, Enlabs.
After having a short offer of £250 million rejected, the web gambling giant has came ultimately back with a greater counter of £316 million.
It's been recommended to Enlabs by their own independent committee that they accept the improved bid that is available. CFO and deputy CEO of Entain, Rob Wood indicated that it's the ambition of Entain to take the revolution of sports betting and online gambling to another level and improve on the current world leader status by creating an unrivalled customer experience.
He also highlighted how competitive that the industry is right now and based on the fact that Entain can supply the foundations to build further can help to somewhat scale Enlab’s already burgeoning brand.
Who are Enlabs and what do they do?
Enlabs is a shortened name of two combined words - Entertainment Laboratories. The biggest iGaming operator in the Baltic region, there is also their particular proprietary technology meaning that this helps to give them a unique selling point within their market.
Launched in 2005, Enlabs have swiftly grown into the leading on line gambling company in north eastern Europe, especially in Latvia and Lithuania where in fact the business has had considerable traction over the last few years.
Enlabs likewise have a numberof brands under their umbrella, which if the bid by Entain is accepted would see them add substantially with their portfolio and really gain a substantial foothold in previously untapped regions.
Such brands include Optibet, that has been the recipient of several awards over the years that has only helped it surge in credibility and reputation. The technology that Enlabs has generated added to the expertise that it has at its disposal has seen it become a leader in the regions that they operate in.
What are the benefits for Entain should this deal go through?
Although Entain are truly the world leader in the web gambling industry, element of their strategic commercial model could be the identification of new markets as they make an effort to ensure that they have easier inroads to these.
The acquisition of Enlabs will certainly help make sure that they are able to gain a powerful grip in countries such as for example Latvia, Lithuania and Estonia, especially as new legislation becomes approved which could result in further opportunities.
From a cross-marketing opportunity, this could also make a great level of sense. Having the ability to converge its current brands with the ones that Enlabs own can help these become popular in these countries - even in different sectors of the industry such as for example live casino.
This really is yet another example of a global power player looking to flex its muscles and beat its competitors to potentially another lucrative revenue stream where new players are concerned.
There's absolutely no doubt that Entain will be lining up more deals over the wider European marketplace in this industry and the acquisition Enlabs will provide the platform for it to do that.