MGM Resorts has demanded a say in any potential transaction following reports that US sports betting and fantasy sports giant DraftKings has made a US$20 billion offer to acquire UK online gaming firm Entain PLC.
Entain and MGM are 50/50 joint partners in BetMGM, the sports betting arm that has quickly established itself among the clear leaders in the nation’s rapidly growing sports betting market.
According to a report overnight by CNBC, since confirmed by Entain itself, DraftKings has made an offer comprising US$20 billion in cash and stocks, exceeding Entain’s enterprise value of £13.2 billion, or US$18 billion. It also far exceeds the US$11 billion offer made by MGM to acquire Entain earlier this year, which was knocked back.
Nevertheless, MGM has issued a statement demanding a say in any such deal considering its potential impact on the BetMGM business.
“MGM is Entain’s exclusive partner in the US online sports betting and iGaming market through our highly successful 50/50 joint venture BetMGM LLC,” it said.
“As a consequence, any transaction whereby Entain or its affiliates would own a competing business in the US would require MGM’s consent.
“MGM’s priority is to ensure that BetMGM continues to capture the growing US online opportunity and realizing MGM’s vision of becoming a premier global gaming entertainment company. MGM believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives.
“MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties’ objectives.”
As recently reported by Inside Asian Gaming, MGM has also flagged a global vision for BetMGM as part of its long-term expansion plans.