Dreamstime/Pressmaster Rumors are circulating that DraftKings has made a $20 billion bid to buy Entain. The fact that it made some sort of proposal is now official, but the details remain secret.
If such a takeover were successful, the US online gambling and sportsbook powerhouse could end up entangled with its main rival in the US iGaming market, BetMGM . Entain is half-owner of that brand, as a joint venture with its namesake, MGM Resorts International.
A DraftKings spokesman told Online Poker Report today: “DraftKings can confirm a proposal has been sent to Entain. Under the UK Takeover Code, we cannot provide any further comment at this time.” So, aside from the fact that some sort of negotiations are underway, we don’t know any specifics. Everything else is a matter of speculation. What is certain, however, is that now that the rumors are confirmed, under UK law, DraftKings has only one month to make a firm offer or take any possibility of a deal off the table. That clock will expire on Oct. 19.
In the meantime, we’re left with three big questions. Question 1: What will happen to BetMGM?
Entain is a big company with a lot of brands in a lot of different markets. BetMGM is only one of them, but it’s obviously going to be an important aspect of any deal. It is, after all, the US market leader in online casino, and a top three brand for iGaming and sports betting combined. “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.” In other words, MGM is signaling that it’s not interested in selling off its portion of BetMGM to […]
Click here to view original web page at www.onlinepokerreport.com
