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Entain is rumoured to be preparing a $1bn takeover of Estonia-based Olympic Entertainment Group (OEG), operator of more than 100 Olympic Casino points in Estonia, Latvia and Lithuania, as well as its flagship betting brand Olybet.

In addition, OEG has ties with the NBA and has been a recognised betting partner of the organisation since August 2020. Through OlyBet, European customers in the company’s active markets have access to the NBA Pick ‘Em game.

The possible takeover was disclosed by Bloomberg over the weekend, citing sources who did not wish to be identified. Neither Entain or OEG has issued a statement on the matter.

OEG was delisted from the Tallinn Nasdaq exchange in 2018, after it was acquired from founder Armin Karu and business partner Jaan Korpusov in a €300m deal by private equity firm Novalpina Capital.

Bloomberg’s report referred to Novalpina as “dysfunctional”, as the firm aims to settle a dispute between founders and investors relating to its fund management, investment control and voting rights.

According to the sources, Entain’s bid will focus on OEG’s operations in Lithuania and Croatia, and a potential structure for the deal could see Entain buy these operations alongside OEG’s online business, with an option to buy the remaining business in early 2023.

The deal would help Entain broaden its reach in European markets, having expanded its reach into newer markets such as Ukraine and Belarus through its acquisition of Enlabs, completed earlier this year.

 

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