A $22.4 billion acquisition in the sports betting industry could set off a domino effect.
MGM Resorts will seek to gain control of its U.S.-based sports betting venture BetMGM if DraftKings succeeds in purchasing Entain.
DraftKings made a $22.4 billion bid for the British sports betting giant, and must present a formal offer for the company by Oct. 19, per United Kingdom regulations.
Entain and MGM Resorts each own 50% of BetMGM. Under the terms of the shared-ownership agreement, a new owner of Entain would need MGM’s approval before operating BetMGM in the U.S.
- “We have 50% now. I would like more. I would need more,” MGM Resorts CEO Bill Hornbuckle said on Tuesday at the Global Gaming Expo.
- BetMGM is expected to bring in over $1 billion in revenue next year.
- MGM Resorts made an $11 billion bid for Entain in January.
Entain’s software provides sports betting odds, player management systems, and other core technology underpinning sports betting. Hornbuckle said that MGM wants long-term control over the tech, preferably through taking over BetMGM.
Last month, MGM Resorts paid $1.63 billion to become the casino and resort operator of The Cosmopolitan in Las Vegas as part of a $5.6 billion deal.