Entain may consider Crystalbet divestment after strategic review

The globally recognizable gaming and sports betting group, Entain plc, announced the launch of a strategic review of its portfolio of markets, brands and verticals earlier this year. For the task, announced in January, the company selected its Board's Capital Allocation Committee (CapCo). Now, several months after the strategic review was initiated, Entain confirmed that CapCo has concluded the processes.

The main objective of the probe was to assess the capabilities, the operational progress and identify options that can help maximize the value for the company's shareholders. Throughout the review, CapCo considered a range of developments, including the significant growth of Entain in Brazil and the planned changes within the regulatory landscape in the UK.

CapCo acknowledged the recent unlimited license approval secured by the company on May 16, 2024, from the Nevada Gaming Commission, as well as the exceptional progress reported by BetMGM, including its NBA and MLB betting markets that were recently launched.

Barry Gibson, Entain's Chairman, commented on the topic in a statement, revealing that it is exciting to confirm that the company's strategic review by the Capital Allocation Committee has come to an end. "Whilst we still have more work to do to improve our operational performance, the Board is pleased with the progress Entain is making so far in 2024 in line with our strategy," he added.

Gibson pointed out: "The Group has the core strengths, brands and products to be competitive across its markets and continues to be a global leader in betting and gaming." Finally, the executive explained: "The Board looks forward to updating the market further on its progress at the interim results in August."

Focusing on Entain's operational progress, CapCo confirmed that the company "has the appropriate portfolio of diversified strategic assets, brands, capabilities and geographic footprint to ensure it is well positioned to deliver high-quality long-term growth."

Notably, the review identified that the leading gaming brand in Georgia, Crystalbet, is a "non-core to the Group." In light of this, CapCo said that the company will look into strategic alternatives for the business.

While the review didn't go into detail on what move can be expected for Crystalbet, CapCo confirmed that there's already interest in the brand from "potential acquirers," signaling the possibility of divesting the asset. With that in mind, no financial data or other details regarding the potential sale were disclosed, which leaves the matter outstanding and subject to further consideration.

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