Bragg Gaming Group announced an extension of its PAM (player account management) provision agreement with Entain. Under the extended deal, the former company will continue to supply the latter party’s Dutch iGaming brand, BetCity.nl, with its proprietary player account management platform.

The deal has been extended until 2025 and will allow BetCity.nl to continue to use Bragg’s content and product delivery services on an exclusive basis for as long as the PAM agreement lasts. As a result, the provider will roll out its proprietary, exclusive and aggregated casino content on BetCity.nl.

In addition, Bragg will supply a selection of sports betting products to the online operator, helping it further engage Dutch audiences.

That is not all, however, as Bragg Gaming will also integrate content from several new iGaming supplier, providing an extra boost to the Entain-owned brand’s portfolio in the Netherlands.

This announcement comes a few weeks after Bragg Gaming Group also extended its Pennsylvania-facing deal with Internet Vikings.

Bragg Gaming Is Glad to Be a Leading Supplier in the Netherlands

Bragg Gaming Group’s chairman and chief executive officer,  Matevž Mazij, commented on the extended deal with BetCity.nl. He praised the Entain-owned brand’s strong market position, noting that his team’s partnership with the company has been very successful so far.

We are pleased to extend our agreement to supply our PAM, proprietary, third-party exclusive and aggregated content to their players until 2025, during which time we are also prepared to work with the BetCity.nl team on a potential migration of the brand to Entain’s proprietary platform.

Matevž Mazij, chair & CEO, Bragg Gaming Group

CEO Mazij concluded that his team is looking forward to “powering the continued success of BetCity.nl.” The executive promised to continue enhancing Bragg’s content and product offering for the Dutch market. He noted that his company is proud to be a leading iGaming supplier in the Netherlands.

Meanwhile, Entain’s recently published Q3 results sparked investor confidence in the company. As a result, US mutual fund company Dodge & Cox has more than doubled its stake in the gaming group. This has cemented the fund’s position as one of Entain’s top shareholders, second only to The Capital Group Companies.

In other news, the company recently reinforced its board by naming the experienced Amanda Brown as a non-executive director.

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Eminence Capital, the investment firm located in New York that currently owns around 13.2 million shares in the popular FTSE 100 sports betting and gaming group Entain, has published an open letter addressing the latter’s board of directors in regard to their proposal to acquire STS Holdings. 

The Harshly Critical Letter, Accusing Entain of Lack of Logic 

In the respective letter signed by chief executive officer/chief information officer Ricky Sandler, Eminence Capital has severely criticized Entain’s decision to purchase STS, describing STS as “at best nice to have”. 

At the same time, the investment company used the letter to strengthen its opinion that Entain was not making use of any logical thinking by continuing to pursue the said agreement which would value STS at 12 x EBITDA while issuing Entain stock at 7 x EBITDA.

Eminence also used the argument of Entain’s decreasing stock by over 8% which has generated a loss of £650 million ($830 million) in terms of value on the market. The amount is similar to the one that Entain would have to pay in exchange for STS Holdings.

Entain’s leadership was also criticized in a similar manner for expressing its support for the potential acquisition. Eminence Capital used the expression “tone deaf” to further explain its stance while adding that the management team does not understand the way finances work or, even worse, to their opinion, they think of shareholders as being naive. 

Eminence explained that while it is interested in supporting Entain in its pursuit of acquisitions and mergers that can be considered rational, it would refuse to fund them with equity that is highly undervalued. This, believes Eminence, would represent a strategy that would destroy the value for shareholders as well as an empire. 

Only Supporting Attractive, Value-Creating Decisions 

The investment firm further explained that, so far, it had participated in several appealing paths that had the potential to create value while raising capital to fund its merger and acquisition initiatives.

Nonetheless, when it comes to the decision to acquire STS, Eminence has adopted a completely opposite stance, especially in the context of Entain presumably purchasing a company while saying no other takeover bids from different companies at better prices. Eminence mentioned MGM as one of those companies. 

Eminence has also warned about the risk of shareholders losing their confidence in Entain’s capacity to allocate its capital to generate value in the long run. In turn, this could lead to a decision to support the sale of the company to MGM at a lower price than the previous estimations.

In April, Entertain announced that it acquired all of the shares of 365scores. 

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