Online gambling company Entain buys esports betting startup Unikrn is looking to triple its business

August 16, 2021: -When Jette Nygaard-Andersen took the helm of U.K. online gambling company Entain, a pandemic was raging, and the company just fended off an acquisition attempt. Now, it’s the one making the deals.

Formerly known as VGC, the company owns British betting company Ladbrokes and many other well-known gaming brands. It operates in 27 regulated gaming markets and intends to expand into 50 more.

On Thursday, he agreed to acquire Unikrn, a Seattle startup that operates a leading esports betting platform backed by celebrity investors, including Mark Cuban and Ashton Kutcher. Financial terms were not disclosed.

Justin Dellario, formerly of Twitch, is heading up the new esports division.

“We can triple our business here; look at how this market will multiply,” Nygaard-Andersen said to CNBC.

Entain expects esports and social casino gaming could add $20 billion in addressable market share over time. All told, seeing a $160 billion addressable market for sports betting, gaming, and interactive gaming.

The news of the acquisition came after Entain posted second-quarter earnings that beat expectations and raised its forecast.

BetMGM, its joint venture with MGM Resorts, captured a second-place market position in the United States for sports betting and gaming during the quarter. Nygaard-Andersen predicts the $6 billion sports betting and gaming market is poised to become a 32 billion dollar market by 2030, a view supported mainly by gaming analysts.

Although the two companies are partners on BetMGM, MGM Resorts would own Entain outright.

The Las Vegas-based casino powerhouse made an $11 billion bid to buy Entain this year. The offer was rebuffed by Entain’s board, saying it “significantly undervalued” the company. But the industry of games insiders expects MGM to acquire Entain for its technology and global market exposure.

On MGM’s second-quarter earnings call, CEO Bill Hornbuckle said, when questioned about M&A priorities, “We have expressed desires in digital and the obvious. I must say our strategy doesn’t refer to and hinge simply on one other company. We are very excited by our JV with BetMGM.”