Fortuna targets rival in Polish betting market expansion

European retail and online betting operator Fortuna Entertainment Group said Thursday that it is currently in negotiations to acquire the Polish subsidiary of rival Tipsport, as the company looks to strengthen its hold on the recently liberalised Polish betting market.

Fortuna said that the acquisition of Tipsport PL Sp. z.o.o would expand its Polish betting network which currently comprises 380 branches and a further 190 retail outlets across the country.

Earlier this month, Fortuna filed a formal request with the Polish Ministry of Finance related to the change of shareholders in Tipsport PL. The final decision by the Ministry is expected within three months. No financial details have yet been made available for the proposed transaction.

“We have begun due diligence this week and if there will be no unexpected complications, then nothing will prevent the conclusion of the takeover of Tipsport PL before the end of this September,” said Jiří Bunda, CEO of Fortuna Entertainment Group.

As a result of the acquisition, Fortuna will increase its stake in the Polish fixed-odds betting market by one third and further strengthen its position as the largest fixed-odds betting operator on the Polish market.

“Our strategy is a combination of branch network and online betting,” continued Bunda. “We are engaged in intensive preparations to expand network retail outlets and strengthen our market position so that it will positively impact on online betting in Poland.”

On May 26th, the Polish parliament amended the gambling law to allow online sports betting for locally licensed players. The new regulations also strengthened the Polish Customs Service’s authority in controlling illegal online gambling activities, including monitoring and suspension of money transfers.

The new regulations came into force on July 14th, with parliament maintaining the high 12 per cent tax on betting turnover.

Immediately after the new regulations were introduced, Fortuna’s Polish subsidiary, Fortuna zakłady bukmacherskie, submitted a request to the Ministry of Finance for permission to provide its clients in Poland with online betting.

The Ministry of Finance is expected to approve this within the next few months, the company said.

In its results for the six month period ended June 30th, also released this morning, Fortuna said that revenues from Poland accounted for 15 per cent of total revenues.