Entain CEE duo to merge “selected operations” as part of new initiative
STS and SuperSport expected to work together as part of the ‘#United’ project that places an emphasis on bolstering the market positions of both as well as future CEE expansion
Entain Central and Eastern Europe (CEE) duo STS and SuperSport are set to merge certain operations as part of a new initiative dubbed the ‘#United’ strategy.
Poland’s leading operator STS and SuperSport, the number one brand in Croatia, will bring cross-market operations closer together as the pair look to cement respective gold medal positions.
As part of the strategy, STS’ Betsys technology brand and SuperSport’s minus5 will also be involved in the closer meshing.
The aim of the new strategy is to strengthen Entain CEE’s “market positions in both countries and prepare for further expansion in ”.
The first stage of the #United strategy will see technology, product, data analytics and sportsbook become joint operations, as well as customer-facing activities, such as CRM and bonuses.
Both STS and SuperSport will also combine retail targeting strategies in both Poland and Croatia.
However, some aspects of operations will not be merged, with “local specificities and differences in legislation” between the two nations cited as the reason.
Radim Haluza, Entain CEE and STS CEO, said the strategy would enhance the “competitiveness” of the brands.
He said: “The #United strategy is a natural consequence of STS entering Entain CEE. The two largest entities from Poland and Croatia have excellent experience, knowledge and facilities.
“The combined companies are able to provide players with the highest quality product, services and solutions.
“We are confident that the best experts from STS, SuperSport, minus5 and Betsys will together build our competencies in key areas of the igaming sector.”
Haluza noted the solidification of the #United project comes after background work was undertaken last year to bring the two entities closer together operationally.
He added: “We already initiated this process last year by creating international co-operation platforms within the same divisions at STS and SuperSport. Now we are taking it a step further and merging selected operations.
“We are enhancing the competitiveness of the brands included in Entain CEE and preparing to potentially strengthen the group with expansion in our region.”
Entain’s acquisition of STS was confirmed in August 2023, with the FTSE 100 operator parting ways with £750m to secure the Polish market leader.
At the time, the deal generated controversy after Eminence Capital, a New York-based hedge fund that is now Entain’s third largest shareholder, described the acquisition as “perplexing on many levels” in an open letter.
Eminence Capital also claimed that the deal for STS was “destructive to shareholders”, adding that the investment fund was “outraged” by the transaction.
The purchase of SuperSport was notably less controversial, with Entain forking out an initial €600m (£506m) in cash for the Croatian business.
The acquisition of SuperSport was facilitated by the creation of Entain CEE, a JV between Entain and EMMA Capital.
As per Entain’s H1 report, the CEE division reported a net gaming revenue jump of 12% on a pro forma basis.