Entain agrees $13m deal for esports betting supplier Sportsflare

Entain has sealed a $13.25m deal to acquire esports betting provider Sportsflare from Tiidal Gaming as it looks to beef up its Unikrn offering.

Under the terms of the agreement, Entain will pay the eight-figure sum in cash to acquire all of the issued and outstanding shares in Sportsflare.

The transaction is subject to standard closing conditions and the approval of Tiidal’s shareholders. The deal includes a $500,000 termination fee payable to Entain should the agreement collapse.

Tiidal will put the transaction to shareholders on 26 April, but the board has already approved the acquisition and has recommend that shareholders vote to green light the deal.

Additionally, Tiidal has secured a NZ$1.7m loan from Entain’s Ladbrokes Group Finance division, with the funds being used to finance the working capital of the group moving forwards.

Sportsflare, which is based in Wellington, New Zealand, was established in 2019 and boasts four key verticals as an esports betting supplier.

The group provides standard markets on esports, as well as bet builders, micro-markets and a bet-on-yourself function.

Entain’s purchase of Sportsflare comes as the group look to ramp up its investment into esports betting arm Unikrn.

Unikrn soft-launched in Brazil and Canada (excluding Ontario) in Q4 after Entain acquired the Seattle-based firm in August 2021.

Entain initially earmarked £50m worth of investment in the platform but CEO Jette Nygaard-Andersen said in February that this investment had not been fully realised.

The boss confirmed that £17m of the original £50m is now being carried over into 2023 from 2022.

Speaking to EGR last week, Entain CFO Rob Wood said esports betting was still a “slow burn” and that the group was looking at the prospect as a long-term investment.

Wood said: “I personally don’t expect it to be meaningful for a couple of years. We wanted to get in right at the beginning of the esports journey. We can establish ourselves and create a brand, but we can also work with regulators to help shape what esports wagering should look like going forward.

“We’ve always said this is going to be a slow burn, so we certainly haven’t put any numbers on it. But I think it will be a few years before it becomes a meaningful contribution to the group,” he added.

Thomas Hearne, Tiidal CEO, said he was “incredibly proud” of the Sportsflare team and added that the brand would be a good addition to Entain’s esports arsenal.

“Given the capital markets environment, we believed it was best to find a great home for Sportsflare in order to maximise value for Tiidal shareholders,” Hearne said.

“Sportsflare will be a great fit with Entain’s strong presence in the industry and our board of directors is confident that Sportsflare joining Entain is the best long-term solution for its employees and partners.”