In a recent legal development,’s former proprietors, including members of the Singels family, ex-CEO Melvin Bostelaar, and previous marketing director Robert Kooiman, have lodged a counterclaim against Entain.
This action is a direct response to accusations by Entain concerning undeclared regulatory investigations which purportedly devalued the Dutch business by as much as €156 million.
The dispute surfaced after Entain acquired BetCity for €450 million in January 2023, a move that facilitated Entain’s entry into the Dutch market.
BetCity was among the first ten licensees in the Netherlands at that time.
Entain’s claim, initiated in January of the current year, emerged following the discovery of two regulatory investigations, previously undisclosed to Entain at the time of purchase.
Documentation retrieved by CasinoNieuws.nl revealed that Entain was led to believe, based on statements from BetCity’s former owners, that no such investigations were underway.
Nonetheless, it was later uncovered that certain BetCity personnel were indeed aware of the ongoing scrutiny by the Dutch gambling regulator, Kansspelautoriteit (KSA).
Contrary to Entain’s assertions, the counterclaim insists that Entain was fully cognizant of these investigations during the acquisition period spanning 2022 and 2023.
The claim, filed in the High Court of Justice in England and Wales on 19 March 2024, demands €143 million in compensation from Entain Holdings (Netherlands) BV and Entain Holdings (UK) Limited.
The investigations in question, initiated in April and May 2022, involved accusations against BetCity for sending promotional materials to young adults and failing to meet anti-money laundering and terrorism financing standards, resulting in fines amounting to €400,000 and €3 million, respectively.
The counterclaim emphasizes that BetCity had communicated the details of these investigations to Entain through various means, including emails and meetings, between the signing of the acquisition in June 2022 and its completion in January 2023.
Moreover, it alleges that Entain expressed concerns over these investigations in a letter dated 10 December 2022.
Post-acquisition, under the leadership of CEO Vic Walia, Entain implemented several changes to BetCity’s operations to ensure compliance with Dutch law.
However, these changes, according to the plaintiffs, were unnecessary as BetCity was already in compliance with the Netherlands’ Money Laundering and Terrorist Financing Prevention Act (WWFT).
These adjustments led to a reduced earn-out for the former owners, resulting in an €83 million loss.
This legal battle, set to unfold in the High Court of Justice in the UK, adds to the controversy surrounding Entain, especially amidst rumors of a potential sale of BetCity.
This speculation gains traction following Entain’s reported net loss of £936.5m for the year 2023, as noted in its annual earnings report released on 7 March.
In an effort to mitigate financial strain from its acquisition spree, Entain is reportedly considering selling assets not directly integrated into its platform, prioritizing those contributing significantly to its net gaming revenues.