Sports betting operator Entain has completed the acquisition of US sports modeling, forecasting and data analytics company Angstrom Sports for up to $266 million.
This acquisition started on July 17; according to a news release from Entain, and the first payment plan was about $98 million, which was due after completion. Then there will be contingent payments payable over three years for the rest.
Entain is a British-owned company that prides itself on developing innovative ways to provide its consumers with an exceptional experience. Angstrom Sports, on the other hand, uses a “simulation-based” medium to provide forecasting technology as well as manage in-play prices without limitations for the top leagues in the United States.
Hence, this acquisition marks the creation of a strong force in the sports betting domain, both in Europe and the United States.
Acquisition promises renewed sports betting options for BetMGM
The goal of the acquisition, according to Entain, was to strengthen the play-in wagering of their US joint venture, BetMGM. Entain will be the first international operator to offer:
- Risk management
- Pricing for the US sports betting industry
In an Entain news release, CEO Jette Nygaard-Andersen commented:
“We are delighted that Angstrom has joined Entain, enabling us to accelerate development of the Entain Platform bringing even more product capabilities in-house. Angstrom’s proprietary next-generation capabilities will unlock significant opportunities, particularly for our US sports betting offering through BetMGM.
We look forward to working closely with the Angstrom team and are excited to provide our customers with an unrivaled sports betting experience.”
Entain projects downtime in its Q3 online gaming revenue
The British government’s recent involvement in creating safe gambling rules and its contribution to setting online betting limits for players in its vicinity have tampered with Entain’s Q3 performance.
In early trading, the company’s shares were already down by 4%.
Last month, the sports betting operator released an update of its current trading and 2023 fiscal year guidance, in which its Q3 Online Net Gaming Revenue (NGR) report projects an up “high single-digit percent and a down high single-digit percent on a pro forma basis.”
It noted further variables contributing to this outcome, such as slower growth than anticipated from Italy and Australia.
Nonetheless, Entain still maintains a strong footing in its EBITDA guidance, with an expectation of $1.22 billion in FY2023. The operator also relies on the fact that its joint venture, BetMGM, weathered the storm by making a profit despite being investigated by the British authorities for an alleged bribery allegation.
Entain continues expansion spree
Entain has been very consistent in extending its footprint across continents, giving its competitors a run for their money.
The European sports betting and gaming group has lately closed several agreements and made a few more purchases, which include:
- Tiidal Gaming NZ acquisition
- Supersports in Croatia purchase
- STS Holdings acquisition
- BetCity acquisition
- Gaming Realms partnership