Another prominent American gaming company is making a move to purchase a prominent British-based outfit. MGM Resorts made a $11.1 billion offer for Entain, the company that owns well-established British bookmakers Ladbrokes and Coral. Entain revealed the offer via a release on the company’s web site.
The offer was rejected by Entain, the company feeling the valuation was too low. Recently, American-based Caesars Entertainment purchased venerable British bookmaker William Hill for $4 billion.
Entain, formerly known as GVC Holdings, and MGM Resorts are partners in ROAR Digital, the online product behind the BetMGM brand in the United States. Other online betting brands operated by Entain include Ladbrokes, Coral, bwin, Sportingbet, Eurobet, PartyPoker, PartyCasino, Gala and Foxy Bingo.
Making a move to acquire Entain is entirely understandable for MGM. The American sports betting market is exploding at a pace more rapid than even anticipated by the most optimistic of industry insiders. British bookmakers already possess some of the most established and cutting edge online betting technology. It’s easier and less time consuming to purchase an existing brand with a stellar reputation than to invest the time and money required to develop their own software.
BetMGM already operates mobile sports betting operations in Iowa, New Jersey, West Virginia, Nevada, Tennessee, Colorado, Pennsylvania and Indiana. The company is expected to begin operations in Michigan and Virginia sometime this month.
“The US market is moving so quickly that to spend one or two years building that up, at the absolute minimum, is just time nobody has to spend,” Alun Bowden, head of European markets at the U.S.-based gambling consultancy Eilers & Krejcik Gaming, told theguardian.com. “The casino firms probably underestimated the growth of both the online gambling market there and the impact on share prices. I think everyone did.
“Two years ago they were happy to do joint ventures and effectively lease the brand for a revenue share deal to European operators. Now they really want to have full ownership of their involvement in the market.”
Under United Kingdom takeover laws, BetMGM has until Feb. 1 to make a formal offer for Entain.
Last month, after rebranding itself Entain, the company delivered a forecast to shareholders that included rapid expansion into the USA. Via their BetMGM partnership they anticipate being operational in 20 U.S. states by the end of 2021.
The company is also expanding into Latin America and intends to apply for a license if Canada legalizes sports betting.
Ladbrokes USA/NJ Bonus?
Not yet, if Ladbrokes brand moves into US sports betting market and launches its app in NJ or other states, we will update this review and write about potential bonus offers and Ladborkes promo code deals. Let’s see.