Flutter eyes Balkans expansion with 51% stake purchase of Serbia's MaxBet for $149M

Flutter Entertainment is set to acquire a 51% stake in MaxBet Kladionica for €141 million ($148.7 million) in cash, marking its entry into Serbia's growing online gaming market. The completion of the MaxBet transaction is contingent upon customary regulatory clearances and is expected to conclude in Q1 2024.

Flutter says the move aligns with the company's strategic objectives for its International division, which focuses on establishing strong positions in regulated markets. The deal allows the company the option to purchase the remaining 49% of MaxBet's business by 2029.

The deal comes on the heels of MaxBet's growth in the expanding online market in Serbia, which has seen a compound annual growth rate of 25% over the last five years. In the 12 months leading up to June 2023, MaxBet generated pro forma revenue of $152.9 million (€145 million), with 44% attributed to online operations, along with an Adjusted EBITDA of $33.75 million (€32 million).

Flutter says it will leverage its advanced 'Flutter Edge' technology platform to integrate MaxBet, optimizing the betting operator's presence across 400 retail outlets spanning four different markets. MaxBet currently commands an estimated 20% share of the online market in Serbia and boasts 95,000 average monthly online players.

Flutter's expansion into the Balkans region holds growth potential, particularly in Serbia, where the online market penetration remains relatively low at around 35%. The Serbian market is expected to experience a compound annual growth rate of approximately 15% by 2025.

Flutter CEO Peter Jackson stated: “MaxBet is an excellent opportunity to replicate the success we have achieved in markets like Georgia, India, and Italy by acquiring a strong brand in a podium position, where we see a compelling opportunity to combine that extensive local expertise with the power of the Flutter Edge to accelerate and transform growth.”

MaxBet, regarded as a 'local hero,' will gain access to Flutter's International portfolio, providing access to its solutions in global proprietary pricing, risk management, proprietary gaming content, and innovation hubs.