Flutter Acquires Majority Stake in Serbia’s MaxBet
Flutter, the parent company of FanDuel and Paddy Power, has announced its acquisition of a 51% stake in Serbia’s second-largest sports betting and gaming operator, MaxBet.
The deal, valued at 141 million euros ($148.95 million), aligns with Flutter’s strategic expansion plans in the Balkans. Furthermore, Flutter retains the option to acquire the remaining 49% stake in 2029 under similar terms. This move reflects the company’s strategy of entering fast-growing, regulated markets, leveraging local expertise alongside its global pricing and technology.
Capitalizing on Balkan Potential
Flutter recognizes the potential in Serbia’s burgeoning betting market, which boasts a relatively low online penetration rate of approximately 35%. The projected online compound annual growth rate until 2025 is estimated at 15%, making it an attractive prospect for Flutter’s expansion efforts. The acquisition of MaxBet positions Flutter to tap into this market’s growth and capitalize on the evolving betting landscape.
The target of this acquisition, reported pro forma fully regulated revenue of 145 million euros in the year ending June. A significant portion of this revenue, approximately 44%, was generated online. MaxBet also has a presence in neighboring countries such as Bosnia, Montenegro, and North Macedonia, expanding Flutter’s regional reach.
Replicating Success in New Markets
Flutter CEO Peter Jackson expressed confidence in MaxBet as a strategic acquisition, drawing parallels with the company’s achievements in other markets, stating “We believe MaxBet is an excellent opportunity to replicate the success we have achieved in markets like Georgia, India and Italy”.
Flutter’s acquisition of a majority stake in MaxBet underscores the company’s commitment to growth and expansion in the Balkans. With a focus on leveraging local knowledge and combining it with global technology and pricing strategies, Flutter aims to capitalize on Serbia’s growing online betting market. This strategic move aligns with Flutter’s vision to diversify its geographical presence while maintaining a dominant position in the global online betting industry.