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MGM mulls latest bid for gambling giant: Casino giant eyeing up Entain

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MGM mulls latest bid for gambling giant: Casino group eyeing up Entain, owner of Ladbrokes, Coral and Gala Bingo

No deal: Entain boss Jette Nygaard-Andersen rejected a previous offer

Casino giant MGM Resorts is mulling one other takeover bid for FTSE-100 gambling group Entain, owner of Ladbrokes, Coral and Gala Bingo, later this yr, in line with City sources. 

The US company previously made a swoop in January 2021. Nevertheless Entain, led by Danish businesswoman Jette Nygaard-Andersen, rebuffed the £8.1billion approach on the grounds the value was too low. 

Analysts imagine the bid is prone to be revived once the UK Gambling Commission has published its long-delayed white paper. 

This has been a stumbling block for bidders, who’re keen to know what it comprises because latest rules could have a big effect on the valuations of UK gambling businesses. Draconian measures on online or problem gambling, for example, could send share prices tumbling. 

The report may very well be released as soon as March. 

A tie-up between the 2 firms is a ‘fairly obvious combination’, analysts at Deutsche Bank said in a note last week. MGM’s previous offer was split between money and shares. Deutsche added that a latest bid with more money would probably ‘be backed by shareholders’. 

Banking news site CTFN described the deal as ‘inevitable’, with sources suggesting that MGM was ‘continuously weighing up a bid’ for Entain, formerly called GVC. Entain is now price £8.9billion – £800million greater than MGM’s proposal in 2021.

The British company has worked with MGM on a three way partnership since 2018 called BetMGM, which operates online sports betting, casino and poker games in a variety of US states. BetMGM will put out a trading update on Thursday. 

In its last financial yr, the joint group made greater than £1billion in revenue. 

The US has been a lucrative marketplace for British firms because online gambling was illegal in America until a number of years ago.

It has still only been legalised in a number of states, including Recent Jersey and Michigan. 

A merger with Entain, whose technology and experience are highly regarded, would make it much easier for MGM to profit when more states legalise online gambling. 

A separate try and take over Entain in 2021 by American sports betting company Draft­Kings also fell apart. 

Recent York-listed MGM is valued at £12billion. It was arrange in 1986 and owns among the biggest resorts in Las Vegas, including the MGM Grand, Mandalay Bay, 4 Seasons and Recent York-Recent York. 

Its Bellagio hotel and casino in Las Vegas, famous for its dancing water fountains, has a presidential suite available for greater than £4,000 an evening.

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