MGM Mulling Ways to Get Control of Entain’s Share of BetMGM

MGM Resorts International is said to be mulling ways of getting control of online betting business BetMGM, which is a 50-50 JV between MGM and UK-based gaming company Entain as the latter has received a $22bn merger offer from online betting company DraftKings Inc. As per the JV agreement between MGM and Entain, the former has the power to block a deal with a competing business such as DraftKings. MGM said in a statement that having control of BetMGM, which is expected to hit revenues of $1bn next year, is “an important step towards achieving its strategic objectives.” Eilers & Krejcik Gaming analyst Chris Grove said that a successful takeover by DraftKings could lead to MGM losing its use of Entain’s technology, the company’s experience in operations and marketing and a partner to share financial risk with. This comes after Entain rejected a $11bn takeover offer from MGM earlier this year.