Former BetCity Owners Demand €104 Million from Entain

In a dramatic turn, BetCity's ex-owners, comprising the Singels family, former CEO Melvin Bostelaar, and marketing director Robert Kooiman, have launched a bold counterclaim against Entain, demanding a staggering €104 million.

Entain's acquisition of BetCity in January 2023 for €450 million, aimed at penetrating the Dutch market, took an unexpected twist when Entain filed a compensation claim in January this year.

Entain alleged BetCity's value was significantly lower than assumed due to undisclosed regulatory investigations at the time of acquisition.

The heart of the dispute lies in Entain's claim of ignorance regarding ongoing regulatory probes into BetCity.

However, the former owners vehemently contest this assertion, alleging that Entain was fully aware of the investigations during the acquisition process.

Documents obtained by CasinoNieuws.nl reveal a complex legal battle. BetCity's former owners assert that Entain had knowledge of the investigations dating back to 2022 and 2023.

Moreover, they claim to have notified Entain of the ongoing probes through various channels, including emails, telephone conversations, and a formal meeting.

The regulatory investigations, led by the Dutch gambling regulator Kansspelautoriteit (KSA), were centered on BetCity's alleged violations.

These included sending promotional emails to young adults and shortcomings in anti-money laundering measures, resulting in hefty fines totalling €3.4 million.

The counterclaim also challenges Entain's subsequent restructuring of BetCity's operations post-acquisition, which allegedly led to a significant decrease in earnings.

BetCity's former owners argue that these changes were unnecessary as the company was already compliant with Dutch laws.

Now, the legal battleground shifts to the High Court of Justice in England and Wales, where both sides will present their cases.

However, with no set court dates, the saga is poised to be prolonged and arduous.

The stakes are high not only for the involved parties but also for the broader industry.

Speculations swirl around Entain's potential divestment of BetCity, especially in light of its substantial 2023 net loss and strategic reevaluation of assets.

As the legal drama unfolds, all eyes are on the courtroom, awaiting the resolution of this high-profile clash between former titans of the betting world.