International sports betting and gaming operator Entain Thursday announced the acquisition of the gaming and wagering assets of Unikrn, the U.S. esports betting and entertainment company.
During a Thursday investors call, Entain CEO Jette Nygaard-Andersen would not discuss terms of the agreement. She did say the U.K.-based company expected to invest a little over US$69 million (GBP£50 million) in the acquired company during the second half of 2021.
“We’re doing this because we believe we really believe we have an advantage here in building an integrated platform that can scale across multiple countries and territories,” Nygaard-Andersen said.
Unikrn’s platforms feature virtual esports, streamer betting, and bet-on-yourself products. Its website covers esports events, trends, news, and other related content.
Nygaard-Andersen said there were many factors considered when weighing the acquisition, including Unikrn’s team and culture.
“There were a number of things that went into it, but it was mostly around technology and product so we could add to the capabilities we have in-house,” Nygaard-Andersen said.
The addition of Unikrn increases Entain’s presence in the U.S, particularly in sports betting markets. In addition to BetMGM, the mobile sports betting company that’s a joint venture with MGM Resorts, Entain also has partnership agreements the NFL’s Denver Broncos and Tennessee Titans. It also offers sports betting in Colorado, New Jersey, Pennsylvania and Tennessee.
“If you look at our Q2 sports betting share, it was 17%,” Nygaard-Andersen said. “And that’s the same as Q1, which was up 11%.”
When asked about potential startup losses due to the new acquisition, Nygaard-Anderson acknowledged Entain was entering in a new field, and that “you should expect us to do less going forward here.”
“But we are certainly ambitious around building a platform that’s sustainable and and profitable in the longer term as the market matures,” she added.
