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Flutter Entertainment, the owner of Paddy Power and Fanduel, announced that it purchased an initial 51% share in Serbia’s MaxBet, the second largest sports betting and gaming company in Serbia for EUR141m. The move was made to expand into other Balkan countries.
Flutter stated that the agreement allows them to purchase the remaining 49% in 2029 at similar terms.
The company said that this deal is in line with its strategy of targeting fast-growing and regulated markets, where it can combine its local expertise with global pricing technology.
Flutter, world’s biggest online betting company, says the EUR700m Serbian gambling market is attractive because of its relatively low online presence of 35%, and the expected compound annual growth of 15% online until 2025.
MaxBet has a small presence in Bosnia-Herzegovina, Montenegro, and North Macedonia. It generated pro forma revenue fully regulated of EUR145m for the year ending June.
It is estimated to have a 20% online market share, as well as 400 retail outlets in four different markets. The brand is well-known locally and there are 95,000 average monthly online players.
Flutter operates in over 100 countries, with 78% of revenue coming from its US, Australia, Ireland, and UK divisions.
Peter Jackson, Flutter’s Chief Executive, said that today’s purchase continues to progress the company against the strategic goals it has set for International Division; to buy podium positions in regulated market.
The CEO said, “We see MaxBet as an excellent opportunity for us to replicate our success in markets such as Georgia, India, and Italy, by acquiring a brand that is in a dominant position. We can combine this extensive local expertise with Flutter Edge’s power to accelerate and transform the growth.”
The transaction is subject to the usual regulatory clearances, and it is expected to be completed in the first quarter 2024.
