Entain advances Canadian ambitions via CA$300m Avid Gaming purchase


Entain has bolstered its Canadian ambitions after detailing the CA$300m (£174m) acquisition of Avid Gaming, including online sports betting and gaming brand Sports Interaction.

The gambling group brokered the transaction with Middlebrook Investments, the owner of Avid Gaming, who exclusively licenses the Sports Interaction trademark.

The firm provides proprietary online betting and gaming products and services to the Mohawk Council of Kahnawà:ke, which operates under its wholly owned Mohawk Online socioeconomic initiative which invests revenue back into the community. Mohawk Online, which is wholly-owned by the MCK, operates Sports Interaction in Canada.

Kahsennenhawe Sky-Deer, grand chief of Mohawk Council of Kahnawà:ke, commented: “Entain is a world class operator with a genuine desire to positively contribute to the communities in which it operates. 

“Kahnawà:ke is well known in the gaming industry, not only for our internationally recognized jurisdiction through the Kahnawà:ke Gaming Commission, but also for our socio-economic initiative, Mohawk Online

“This new partnership between Entain and the Mohawks of Kahnawà:ke is mutually beneficial, and brings with it prime opportunity for bolstering our self-sufficiency through the continuing success of Sports Interaction.”

The combination is expected to deliver approximately CA$15m (£8.7m) of synergies in 2023, predominantly from technology, content and procurement benefits. This results in a post synergies acquisition multiple for Entain of approximately 7x 2023 EBITDA.  

Jette Nygaard-Andersen, CEO of Entain, explained: “Sports Interaction is the leading Canadian sports betting and gaming brand and is aligned perfectly with our own ambitions of great customer service and ambitious growth, coupled with an unwavering commitment to sustainability.   

“It is highly complementary to our existing operations in Canada, and the combination of its local expertise and Entain’s powerful platform will provide customers with an unrivalled range of exciting and engaging products in this fast-growing market. We look forward to welcoming Will Golby and his team to Entain.

“Investing in the communities where we operate is a key pillar of Entain’s sustainability strategy. We are therefore delighted to be supporting the Mohawk Online socio-economic initiative.”

For the financial year of 2021, Sports Interaction is reported to have generated revenue of CA$76 million (£44m) combined with an EBITDA of CA$18m (£10.5m) Following its socio-economic contribution to the community of Kahnawà:ke, Sports Interaction registered profits before tax of CAD $17.4m (£10m).

Will Golby, CEO of Avid Gaming, who along with other members of the leadership team will transition to Entain, added: “We are delighted to be joining forces with Entain, which is an exceptional company combining world-class brands, strong leadership and a winning strategy. 

“It has a unique approach to local markets, and no other company of its scale consistently delivers so many well-executed, localised approaches to the same level of customisation and detail.

“Entain’s commitment to sustainability, responsible gaming and community investment aligns exactly with our own business philosophy, and we look forward to a bright future together.”