It appears that Entain, the current owners of BetCity, a prominent Netherlands-facing betting brand, are embroiled in a tussle with the entity’s previous holders. Reports from the Dutch casino-centric platform, CasinoNiews, revealed on December 7, 2023 that a legal action was initiated by Entain.
According to the details shared by CasinoNiews, the litigation has been forwarded to the UK’s Commercial Court, a court with a specific concentration on commercial legal matters. The suit is registered under case number CL-2023-000850, and it centers around a Part 7 Claim. This implies that it’s a situation that was destined for the courtroom, typically suggesting a commercial contractual disagreement, likely involving the acquisition of BetCity by Entain.
Intriguingly, CasinoNiews was unable to specify the precise allegations that Entain has levelled against Sports Entertainment Media.
For context, Entain officially took over BetCity in the early part of 2023. The deal had been sealed after agreeing to a preliminary consideration of €300 million (approximately $324 million during that period), and an eventual deferred contingent consideration of €550 million ($594 million) in June 2022.
Initially, there were indications that both parties were pleased with the status quo, adding to the surprise and intrigue surrounding the sudden onset of this legal dispute.
CasinoNiews did learn that Clifford Chance, a global law corporation, will be defending Entain throughout these proceedings. Simultaneously, the attorneys from Sidley Austin, another high-profile law firm, will be representing Sports Entertainment Media.
The lawsuit additionally calls upon individual Sports Entertainment Media shareholders, inclusive of the Singels family and former leaders from BetCity. Notable among them are the organization’s former CEO Melvin Bostelaar, and ex-director of marketing Robert Kooiman.
Attempts made by the Dutch news site to reach the ex-owners of BetCity were met with silence, as they declined to comment. Entain equally did not offer a response to inquiries.
To give further context, BetCity is regarded as one of the Netherlands’ most successful betting corporations. Being among the original ten online casino licensees, the brand holds a generous chunk of market share in the homeland. This benefits Entain by bolstering its global reach.
As for recent activities, Entain has decided to step back from more than 140 unregulated markets. This development was part of a negotiated deferred prosecution agreement (DPA) with the Crown Prosecution Service. The terms of the agreement dictated that Entain concentrate solely on supervised markets and retreat from all unsupervised ones, save for those slated for imminent gambling regulation.
