Entain Files Lawsuit Against Former Owners of BetCity

Entain’s Dispute with Former BetCity Owners Leads to Lawsuit

Entain, a gambling brand currently owning BetCity, is reportedly facing a legal dispute with the former owners of BetCity. The lawsuit was filed by Entain on December 7, 2023, according to a report by CasinoNiews, a Dutch gambling-oriented website.

The case has been filed in the UK’s Commercial Court, a court that focuses specifically on commercial law. The case bears the case number CL-2023-000850 and concerns a Part 7 Claim, which refers to a matter where going to court is unavoidable. The lawsuit implies that it concerns a dispute over a commercial contract, likely referring to Entain’s acquisition of BetCity.

The exact nature of the dispute and what Entain accuses the Sports Entertainment Media of is still unclear, as CasinoNiews was unable to confirm this information.

Entain completed the acquisition of BetCity in early 2023 after agreeing to an initial consideration of €300 million and a maximum deferred contingent consideration of €550 million in June 2022. Initially, the two parties seemed content with the acquisition, leaving the reason behind the current lawsuit a mystery.

Entain will be assisted in the case by Clifford Chance, an international law firm, while Sports Entertainment Media will be represented by Sidley Austin, another major law firm. The lawsuit also summons individual Sports Entertainment Media shareholders, including the Singels family and former BetCity leaders, such as the company’s ex-chief executive officer Melvin Bostelaar and ex-marketing director Robert Kooiman.

Despite efforts to reach out to BetCity’s former owners, they refused to comment on the matter, and Entain also did not respond to inquiries.

BetCity is among the biggest gambling companies in the Netherlands and holds a significant market share in the country as one of the original ten online casino licensees. Entain’s acquisition of BetCity has helped the company reinforce its international presence.

In other news, Entain recently withdrew from over 140 unregulated markets, following a deferred prosecution agreement (DPA) with the Crown Prosecution Service. As per the agreement, Entain agreed to focus only on regulated markets and withdraw from all unregulated ones, except those that have prospects of regulating gambling soon.