Flutter Entertainment, one of the leading global betting and gaming companies, is set to acquire a 51% stake in MaxBet, a prominent operator with operations spanning across Serbia, Bosnia, Montenegro, and North Macedonia. The acquisition, valued at €141 million ($148 million) in cash consideration, is subject to customary regulatory clearances and is expected to be finalized in Q1 2024. Flutter also holds an option to acquire the remaining 49% stake in MaxBet in 2029.
Strategic Move into the Balkans:
MaxBet’s strategic presence in the Balkans, particularly in Serbia, makes it an attractive acquisition for Flutter Entertainment. The operator has a strong foothold in the Serbian market, benefiting from the substantial growth of the online sector, which has witnessed a remarkable 25% compound annual growth rate over the past five years. In the 12 months leading up to June 2023, MaxBet reported pro forma fully regulated revenue of €145 million, with 44% generated online, contributing to an adjusted EBITDA of €32 million.
Local Strength and Online Dominance:
MaxBet’s local strength is exemplified by its 20% share of the online market and a network of over 400 retail outlets. The operator also boasts an engaged monthly online player base of approximately 95,000. With a significant portion of revenues originating from Serbia, MaxBet is strategically positioned to leverage the continued growth of the online market in the region.
Flutter’s Expansion Strategy:
Flutter Entertainment’s acquisition of MaxBet aligns with its strategic priorities, focusing on gaining podium positions in regulated markets. The company has successfully implemented a similar approach in markets such as Georgia, India, and Italy. Serbia, with a market value of €700 million in 2022 and a 35% online penetration rate, presents a promising landscape for Flutter. Additionally, the expected 15% annual growth in online penetration in the Balkans by 2025, driven by cash-based economies and the significance of retail operations, further enhances the appeal of this acquisition.
CEO’s Perspective:
Peter Jackson, Chief Executive of Flutter Entertainment, expressed his excitement about the addition of MaxBet to the company’s portfolio. He highlighted that the acquisition reflects their strategy of acquiring strong brands in podium positions within regulated markets. Jackson believes that combining MaxBet’s local expertise with Flutter’s capabilities will accelerate and transform growth in the Balkans.
Flutter Entertainment’s acquisition of a majority stake in MaxBet signifies its commitment to expanding its presence in regulated markets and capitalizing on the promising opportunities presented by the Balkans, particularly Serbia. This strategic move reinforces Flutter’s position as a major player in the global betting and gaming industry.