European portfolio grows

Dublin, Ireland-based Flutter Entertainment has added a new omnichannel gambling arm to its European portfolio after it announced the acquisition of 51% of Serbian challenger brand MaxBet for €141m ($148m) cash.

Flutter shared news of its controlling stake in MaxBet via X on Wednesday:

The deal, which is expected to close in the first quarter of 2024, will bolster Flutter’s footprint in the Eastern European gaming market. The FanDuel parent also has the chance to acquire the remaining 49% of MaxBet in 2029.

According to Flutter, MaxBet has been reaping the benefits of Serbia’s staggering 25% growth in the online betting market “on a compound annual basis” over the last five years. Over the last 12 months to June 2023, MaxBet made “pro forma fully regulated revenue of €145m” with adjusted EBITDA of €32m.

International strategy

Flutter CEO Peter Jackson expressed his firm’s excitement in the takeover, stating the move was in line with Flutter’s international business strategy “to buy and build podium positions in regulated markets.”

accelerate and transform growth”

Jackson held up the forays of Flutter in the markets of India, Italy, and Georgia as a blueprint for success in Serbia. In acquiring the brand second to Meridianbet on the Serbia gambling industry podium, Jackson believes Flutter’s power, combined with MaxBet’s local knowledge, will “accelerate and transform growth.”

According to the Flutter news release, MaxBet will give Flutter access to over 400 brick-and-mortar outlets across as well as 95,000 average online monthly players.

Promising bet

According to Statista, Serbia’s gambling market is in a healthy position and growing stronger, with revenue for online gambling projected to reach €119.90m in 2023.

Flutter stated that Serbia “is an attractive, regulated market […] with expected online compound annual growth to 2025 of approximately 15%.”