Penta Investment Group is currently in the process of assessing a myriad of strategic options for its high-profile betting division, Fortuna. Known for its substantial footprint across Central and Eastern Europe, Fortuna manages a multitude of gambling sites and retail betting shops dotted throughout several key markets including Poland, Croatia, Romania, Slovakia, and the Czech Republic. The company operates under a trio of eminent brands: Fortuna, Casa Pariurilor, and PSK.
A recent Reuters report has sparked discussion within the industry, with projections that any potential disposal of Fortuna could command a price tag northwards of €2 billion. Penta first invested in Fortuna back in 2005 and has since increased its stakes significantly, securing an overwhelming 79.8% holding in 2017. Following this, Penta launched an aggressive takeover bid in 2018, which eventually led to a full acquisition of the company through its subsidiary, Fortbet Holdings. Subsequently, Fortuna was withdrawn from public trading on both the Warsaw and Prague stock exchanges.
Although Penta has indicated that it may consider a majority sale, the firm maintains that its primary focus remains on fortifying the Fortuna brand while fostering sustainable growth and generating lasting value. “As discussions are in their early stages, it’s premature to speculate on the specific outcomes,” a representative of Penta communicated to iGB. “However, the possibility of a majority sale remains within the realm of consideration.”
The investment group’s long-term dedication to the gaming industry is not in question, despite the current evaluation of Fortuna’s future. “Penta, as a long-term investor, remains committed to the sector,” affirmed the group. “Our continued interest in the industry is driven by a robust belief in its potential and enduring value. We find the sector attractive and are looking to stay in it.”
The company’s strategic maneuver in delisting Fortuna was deemed necessary to place it on an even playing field with competitors by circumventing certain public disclosure requirements. Victor Corcoran, the erstwhile chief of Paddy Power Online, is at the helm of Fortuna as its CEO. He took over from interim chief David Vaněk after Per Widerström, who headed Fortuna for a notable seven-year stretch, departed to serve as CEO of 888 Holdings in February 2022.
With a comprehensive presence scattered across the prominent markets of the Czech Republic, Romania, and others, Fortuna emerges as a coveted entity for potential acquirers aiming to expand in Central and Eastern Europe. This region is beginning to capture the gaming industry’s interest as a viable source for new and profitable ventures.
Entain has been particularly active in the region establishing a foothold through its joint initiative, Entain CEE, alongside EMMA Capital. The collaborative venture has been decisive, seizing a 75% stake in Croatia’s SuperSport in August 2022 and then acquiring Poland’s STS Holdings the following year. Despite some shareholders expressing reservations, Entain CEE seems undeterred, eyeing additional acquisitions of leading omnichannel brands within the region.
Flutter Entertainment, the parent company of Paddy Power, too has made inroads into Central and Eastern Europe. It recently secured a 51% share of Serbian sports betting and gaming operator MaxBet for €141 million in September. This agreement extends an opportunity for Flutter to acquire the remaining stake in 2029. This venture offers Flutter a valuable passage into the regulated Serbian market, furthering its strategy of expansion in the Balkans.
As the gaming industry continues to converge on Central and Eastern Europe, with thriving markets ripe for conquest, the future of Fortuna, under Penta’s stewardship, will be closely watched by industry observers and competitors alike. The outcome of these strategic deliberations could reshape the gaming landscape in this burgeoning region.
