Want more from Front Office Sports
in your search results?
Legal sports betting in the U.S. has set off a tug-of-war over decades-old U.K. betting companies.
MGM Resorts is seeking to gain full control of BetMGM now that its partner in that enterprise, Entain, is weighing a takeover offer from rival DraftKings. BetMGM, owned 50-50 by MGM and Entain, operates a U.S.-based sportsbook and other gambling properties.
MGM could try to gain a majority of board seats at BetMGM, or take the company public.
Entain owns 135-year-old betting operator Ladbrokes, Coral, and PartyPoker.
- DraftKings offered $22 billion for Entain in cash and stock, Entain said Tuesday. The company rejected an offer of half that amount from MGM in January.
- MGM said on Tuesday that a DraftKings acquisition of Entain would require BetMGM’s consent because DraftKings owns a competing U.S. business.
- Revenue projections for BetMGM are expected to surpass $1 billion next year.
The tussle is the latest chapter in a restructuring of the U.K.’s legacy gambling operators. Earlier this month, William Hill, founded in 1934, sold its non-U.S. properties to 888 Holdings for $2.8 billion. The company was acquired by U.S.-based casino operator Caesars Entertainment for $4 billion in April.
Spending on U.K. gambling companies rocketed to $22.6 billion in the third quarter, more than triple the previous four quarters combined, according to Bloomberg.
Download the FOS App
The business of sports, in your pocket.
Scan the QR code to get the app now.
