US based casino major MGM Resorts is apparently planning to acquire the renowned British gaming company Entain as a part of its latest effort towards entering the online gambling business. For the record, Entain owns bookmaker Ladbrokes, as well as numerous online gambling and sports betting sites.
Apart from Ladbrokes, FTSE 100-listed Entain also owns online gaming group Partypoker and sports-betting site Bwin. The company boasts of being one of the largest sports betting and gaming groups across the globe operational in the online as well as retail sector.
Last month, the company had renamed itself from GVC Holdings to Entain. The other brands that the $9 billion group owns are Eurobet, Coral, Foxy Bingo and Gala. As per credible sources, Entain had recently declined a $10 billion all-cash offer extended by MGM.
Reportedly, the new bid comes with financial support from the largest shareholder of MGM, named InterActiveCorp (IAC), which during last August, secured a 12% stake in MGM Resorts.
Speaking of the initiative, Barry Diller, chief executive of IAC stated that the company intends to work with MGM for expanding its online gambling business.
It has been reported that this possible acquisition comes as a result of the headwinds faced by casino industry from coronavirus pandemic. The brick and mortar casinos have severely suffered due to travel restrictions.
In fact, the economy of prominent Asia based casino hub Macau reduced by 49% during the first quarter of this year, while unemployment across Las Vegas was around 30%, earlier in the year and remains significantly above the US average.
MGM Resorts, which operates the Bellagio casino of Las Vegas, terminated around 18,000 furloughed employees in the US in the month of August.
Reportedly, several online gambling companies on the other hand witnessed a substantial growth during Covid-19 restrictions which has encouraged various casino owners to shift their businesses to online vertical.
Source credit: https://www.bbc.com/news/business-55525982