The gambling industry in Europe has seen a run of large mergers and acquisitions as companies chase growth, diversification and consolidation. This note looks at three of the landmark deals announced between 2019 and 2021, the size of each, who was involved and what the price implied in valuation multiples. The figures are approximate, drawn from the companies’ announcements and annual reports at the time, and converted at the exchange rates of the day.
Flutter Entertainment and The Stars Group
Flutter and The Stars Group announced their all-share merger in October 2019 and completed it in May 2020. The combination created a group valued at about USD 12 billion, with Flutter shareholders holding roughly 55% and Stars Group shareholders roughly 45%. The USD 12 billion figure is often quoted as the deal value, but it is the value of the combined company; the implied equity value of The Stars Group itself was in the region of USD 6 billion, before its debt of roughly USD 5 billion.
Evolution Gaming’s Acquisition of NetEnt
Evolution announced a recommended all-share offer for NetEnt in June 2020, valuing the slot developer at about SEK 19.6 billion, or roughly USD 2.1 billion, and completed it in December 2020. The stated rationale was to combine Evolution’s lead in live casino with NetEnt’s slots portfolio and US footprint, with synergies of around EUR 30 million a year. NetEnt’s profits had actually declined in 2019, so this was a strategic price for content and distribution rather than a bet on current earnings.
Caesars Entertainment Acquires William Hill
Caesars agreed to buy William Hill in September 2020 at 272 pence a share, about GBP 2.9 billion or USD 3.7 billion, and completed the acquisition in April 2021. The price reflected William Hill’s market capitalisation, its UK and European retail and online businesses and, above all, the value of the US sports betting joint venture that Caesars wanted to own outright. Caesars subsequently sold the non-US business to 888 in 2022.
The Role of Valuation Multiples in M&A Decision Making
Valuation multiples give buyers and sellers a quantifiable reference point for a company’s worth based on its earnings, revenue or cash flow. In European gambling they matter more than in most sectors because technology, consumer preferences and regulation all move quickly, and a multiple paid last year can look generous or cheap within months.
The most common references are EV/EBITDA (enterprise value to earnings before interest, taxes, depreciation and amortisation), price to sales and price to earnings. Compared against sector averages, they indicate whether a deal price is fair, where the risks sit and how much growth the buyer is paying for. The one discipline that matters most is consistency: an equity value should be divided by equity earnings, and an enterprise value by EBITDA. Mixing the two is the most common way to misread a deal.
1. Flutter Entertainment and The Stars Group (announced 2019, completed 2020)
Implied equity value of The Stars Group: roughly USD 6 billion (all-share)
Financial metrics: The Stars Group’s 2019 revenue was approximately USD 2.5 billion and adjusted EBITDA about USD 920 million.
Estimated multiples: about 2.4x sales and 6.5x adjusted EBITDA on an equity basis. Including the group’s debt, the enterprise value multiple was closer to 12x adjusted EBITDA.
2. Evolution Gaming’s Acquisition of NetEnt (2020)
Offer value: approximately USD 2.1 billion (all-share)
Financial metrics: NetEnt’s 2019 revenue was approximately SEK 1.8 billion, or USD 190 million, and EBITDA about SEK 855 million, or USD 90 million.
Estimated multiples: about 11x sales and 23x EBITDA.
3. Caesars Entertainment Acquires William Hill (announced 2020, completed 2021)
Deal value: approximately GBP 2.9 billion, or USD 3.7 billion (cash)
Financial metrics: William Hill’s 2020 net revenue was approximately GBP 1.3 billion, or USD 1.7 billion, in a year heavily affected by shop closures and the suspension of sport.
Estimated multiples: about 2.2x sales. Earnings-based multiples for 2020 are not meaningful because of the pandemic, which is one reason the buyer anchored on the US joint venture rather than on trailing profit.
Conclusion
The spread between these three deals - a low single-digit sales multiple for a mature retail-heavy bookmaker, a mid-single-digit EBITDA multiple for a scaled online operator paid in paper, and more than 20x EBITDA for a content supplier with strategic value - shows how much the multiple depends on what is being bought and why. For owners of gaming businesses in our region, the lesson is to benchmark against the right comparable, on a consistent basis, rather than against the headline figures in the press.
Note
These are estimates based on the companies’ public disclosures at the time of each transaction, restated in 2026 to put every multiple on a consistent basis. Precise figures depend on the exchange rates, the debt included and the earnings definition used in each case.
(Sources: Flutter Entertainment and The Stars Group announcements, 2 October 2019; The Stars Group full-year 2019 results; Evolution Gaming offer announcement, 24 June 2020; NetEnt year-end report 2019; Caesars Entertainment announcement, 30 September 2020; William Hill full-year 2020 results)