Bettery's previous proprietors challenge Entain's lawsuit by filing a claim for compensation of their own.
Previously, the proprietors of the Dutch gambling platform BetCity initiated a lawsuit against the UK gambling colossus Entain, seeking over 100 million euros in compensation. Initially, Entain had launched a lawsuit against BetCity. The dispute revolves around intel pertaining to investigations conducted by the Kansspelautoriteit (KSA), the Dutch gaming regulator.
Entain alleges BetCity of Deception
In January 2023, Entain acquired BetCity for a staggering 450 million euros, as detailed by the industry publication iGaming Business. However, a year later, Entain levied accusations against the former owners of BetCity, alleging they concealed the KSA investigations.
Due to these investigations, Entain, now BetCity's owner, was slapped with a hefty million-euro fine. Moreover, Entain claimed it wouldn't have invested such a considerable sum in the BetCity acquisition had it been aware of the investigations.
Entain contends that the prior BetCity owners signed statements prior to the sale asserting they had no knowledge of ongoing investigations against BetCity. Entain accused them of making false declarations in this regard.
BetCity Owners Countercharge Entain
In their response, the former BetCity proprietors now implicate Entain of having knowledge about the investigations. This allegedly transpired during the acquisition process in 2022 and 2023.
The previous BetCity owners asserted they had notified Entain about the ongoing investigations in numerous messages in November and December 2022. This included emails, phone conversations, and a personal meeting on November 17, 2022.
There's even said to be a letter dated December 10, 2022, in which Entain voiced worries about the ongoing investigations. This reportedly influenced the negotiations over the final offer value for the takeover.
Entain Plans to Shed Several Brands
The new Entain leadership is said to be contemplating a comprehensive restructuring of Entain's brand lineup. The disposal of BetCity is also a part of this initiative.
This shift marks a departure from the expansion-oriented strategy led by former CEO Jette Nygaard-Andersen until her exit the previous year. Entain shareholders have criticized the acquisition policy for quite some time.
Entain is currently experiencing hard times, as the company incurred a historic billion-dollar loss last year. Despite the new management emphasizing its current efforts to shed old responsibilities, these responsibilities continue to hamper the company.
What's Next?
Both lawsuits are scheduled for hearing at the Royal Courts of Justice. Yet, as of now, no hearing dates have been set. At this juncture, it's merely speculation who might be right in this dispute.
iGaming Business forecasts a lengthy legal procedure. A potential sale of BetCity to another company might also be delayed due to the counterclaim.
In the midst of these legal disputes, some have wondered if online casinos in Germany, given their regulatory environment, could potentially serve as a safe haven for BetCity, should the situation with Entain prove unfavorable.
Moreover, as the court proceedings continue, questions have arisen about whether Entain's failure to disclose the KSA investigations during the acquisition process may have violated German transparency regulations, given its acquisition of BetCity.
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