Entain’s acquisition of Angstrom Sports for up to $263 million has raised questions due to Angstrom’s relatively low annual revenues. However, the investment is driven by several factors. The competitive nature of the US sports betting market, particularly in the Single Game Parlay (SGP) segment, makes Angstrom’s pricing and analytics expertise valuable. This acquisition enhances Entain’s SGP offerings, strengthens their position in the BetMGM joint venture, and provides defensive benefits by keeping Angstrom away from potential competitors like Penn, DraftKings, and Hard Rock.

The increased profits are attributed to several factors, including significant revenue growth in central and eastern Europe (CEE), central Asia, and increased earnings from their business-to-business (B2B) operations, particularly in the resurgent Turkish market. In Q2, B2B revenue, which includes Betsson’s partnership with Turkish-facing Realm based in Malta, accounted for approximately 27% of the expected revenues, ranging from €235.5 million to €237.5 million. This is a notable increase compared to 17% in the same period last year. Furthermore, revenues from the CEE region and central Asia represented 43% of the total revenues or approximately €102 million. This is a significant rise from the 33% share seen in Q2 of the previous year. However, revenues from Norway, where Betsson has faced regulatory pressure due to perceived […]