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Entain CEO suggests BetMGM partnership’s future uncertain

BetMGM, a well-known online gambling and sports betting platform, has been functioning as a collaboration between MGM Resorts International and Entain Plc in an equal ownership structure. This arrangement is expected to continue for the time being. However, statements by Entain’s CEO, Jette Nygaard-Andersen, at the Global Gaming Expo indicate that this setup may not be permanent.

According to Nygaard-Andersen, joint ventures have a finite lifespan and do not last indefinitely. However, she did not disclose any specific information regarding the duration of the current joint venture or any potential changes that may occur in its structure.

Nygaard-Andersen’s statements hold a unique level of interest because MGM CEO Bill Hornbuckle was also present on the panel with her. In the past, Hornbuckle has shared his company’s desire to eventually have complete ownership over BetMGM, making Nygaard-Andersen’s remarks even more intriguing.

This conversation arose after Entain’s recent conservative prediction for their third-quarter earnings, causing speculation among investors. Some experts propose that the current difficulties faced by Ladbrokes’ parent company could potentially increase its appeal to MGM and result in another potential acquisition bid.

At the start of 2021, Entain was offered a buyout proposal worth $11.06 billion by MGM, but it was turned down due to being deemed inadequate. Hornbuckle has made it clear that his business has no plans to attempt further to acquire Entain.

Based on the latest closing of the US markets, Entain has a market value of $7.21 billion. This means that any interested party could engage in talks with the company at a lower price than the previously rejected offer of $11.06 billion for its ownership of Coral.

At the G2E panel discussion, Hornbuckle recognized that FanDuel and DraftKings have emerged as the top players in the USA sports betting market, surpassing BetMGM and all other competitors. He also hinted at a potential new feature for BetMGM. This unified wallet system would allow users to easily access and use their app across different states where it is operational.

During a public speaking event, Hornbuckle reassured the listeners that MGM’s recent experience with ransomware has been successfully resolved without giving in to the demands for payment. The company’s insurance coverage will cover the $100 million decrease in earnings during the third quarter caused by this attack.

As a closing statement, Hornbuckle shared positive sentiments about avoiding a labor strike in Las Vegas. He also mentioned that MGM plans to replace the previously removed trees from the Bellagio as part of preparations for the upcoming Las Vegas Grand Prix.

Maxine Klingensmith

Maxine holds a bachelor degree in journalism, and she has worked as a freelance writer with foremost publications. Recently, Maxine has joined our team as a news editor. As she is passionate for casino and gambling industry, she conventionally contributes the latest news and reviews for casinos.

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