Kenneth Dart, the Cayman Islands-based US-born billionaire investor, has triggered a mandatory takeover threshold at Swedish gambling giant Evolution AB.
Dart’s investment vehicle Candle Lake has raised its stake in Evolution to 30.02%, crossing the critical threshold under Swedish takeover rules.
Under those rules, Candle Lake now has four weeks to either sell shares to bring its holding below 30%, or submit a formal offer for the remaining shares.
The situation at Evolution may not be the only major decision facing Dart in the coming months, as his activity at Flutter Entertainment is drawing equal attention.
Dart has been gradually accumulating shares in Flutter, the owner of brands including Paddy Power, Sky Bet, Betfair, FanDuel, and PokerStars.
According to company filings from 29 June, Dart’s Flutter holding now sits at approximately 29%, placing him just one percentage point away from a second mandatory bid threshold.
Should that 30% level be crossed, Flutter would trigger its own mandatory takeover obligation, with the company firmly subject to Irish Takeover Rules jurisdiction.
Crossing a mandatory bid threshold at a large-cap listed supplier is rare, and Dart now sits at or near the trigger point in two of the sector’s biggest quoted groups simultaneously.
Both companies have faced share price pressure recently, with Evolution down 16% over the past year, currently trading at SEK 735.60, while Flutter has suffered a far steeper 65% decline, with shares sitting at around $105.
Evolution’s regulatory difficulties add another layer of complexity to any potential takeover consideration Dart may be weighing at the Swedish supplier.
The UK Gambling Commission recently published a statement on Evolution Malta Holding Limited, finding that its money laundering and terrorist financing risk assessment failed to flag that two operators were supplying its games into Great Britain without a licence.
Those breaches involved six unlicensed websites accessible to UK players between December 2023 and November 2024, a period during which Evolution’s compliance controls were deemed insufficient.
A suspension of Evolution’s UK licence was reportedly considered by the Gambling Commission before a £4.75m settlement was ultimately reached with the company.
The mandatory bid clock for Evolution began the day after that Gambling Commission statement was published, adding urgency to the decisions now confronting Dart.
Whether Dart pursues a full takeover offer for Evolution, or allows his Flutter stake to inch toward its own triggering point, the industry is watching closely for his next move.
