Flutter Expands in Balkans with MaxBet Acquisition

Flutter Entertainment, the parent company of Paddy Power and FanDuel, has made a strategic move into the Balkans!

The company stated that the new move will see its expansion to one of the leading markets in the region, which will bring great benefits to both the company and local players.

An amazing piece of news comes straight from Serbia after the company said that it just acquired a 51% stake in MaxBet, Serbia’s second-largest sports betting and gaming operator. The price of this step was €141 million!

Eyeing Future Growth

This purchase is part of Flutter’s plan to expand its presence in fast-growing, regulated markets where it can blend regional expertise with its international technology.

The deal also includes an opportunity for this fast-growing brand to obtain the remaining 49% stake in the brand in 2029 under similar . This move aligns with Flutter’s goal to tap into Serbia’s lucrative betting market, which is valued at €700 million. The market nowadays has a fairly low online penetration rate of around 35%, offering substantial development potential. However, it is expected to undergo a compound annual increase rate of approximately 15% until 2025.

MaxBet, the target of this acquisition, has accomplished pro forma fully regulated revenue of €145 million in the year leading up to June. A notable 44% of this income comes from online operations, demonstrating the company’s strong digital presence. Besides Serbia, MaxBet also operates in Bosnia, Montenegro, and North Macedonia, giving Flutter a foothold in these markets as well.

Digital Dominance

MaxBet’s online segment boasts an estimated 20% market share, and the company can boast a wide network of more than 400 retail outlets across the four countries it serves. It is also recognized for its well-established local brand and boasts an impressive average monthly player count of 95,000.

On the other side, we have Flutter Entertainment, which generates 78% of its earnings from its key divisions in the US, Australia, Ireland, and the UK, and has a global presence, operating in over 100 countries worldwide. With this acquisition, Flutter aims to continue its growth trajectory and further diversify its geographic footprint.

Peter Jackson, Flutter’s chief executive, stated that this move will help with the brand’s further progress ”against the strategic priorities it has set for its International division; to buy and build podium positions in regulated markets.”

“We believe MaxBet is an excellent opportunity to replicate the success we have achieved in markets like Georgia, India, and Italy by acquiring a strong brand in a podium position, where we see a compelling opportunity to combine that extensive local expertise with the power of the Flutter Edge to accelerate and transform growth,” the CEO added.

Source:

”Flutter Entertainment Buys 51% Stake in Serbia’s MaxBet”, europeangaming.eu, September 28, 2023.