News broke on Tuesday that DraftKings has offered to purchase partypoker parent company Entain for $20 billion . If the offer is accepted, the deal makes for some interesting dynamics for ROAR Digital, which runs the partypoker US Network .
ROAR is a partnership between Entain and MGM Resorts in the US. The company is a market leader in sports betting and online gaming as well.
A potential deal would mean DraftKings could own part of a major competitor in the US market. That’s something Entain has already taken into account and any potential acquisition would require that aspect of the deal to be sorted out. “Any transaction whereby Entain or its affiliates would own a competing business in the US would require MGM’s consent,” the company said in a statement to CNBC . “MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties’ objectives.” A look at partypoker US operations
An agreement between the two companies could come with some unique repercussions for the US poker platform. Partypoker US Network offers legal, regulated online poker in three states utilizing the following poker skins: New Jersey – partypoker, BetMGM , Borgata Poker
Michigan – BetMGM
Pennsylvania – BetMGM, Borgata Poker
All states in the network operate in a “ ringed-in ” environment, meaning each state plays against others within that state. However, those player pools could eventually be combined as states finalize interstate compacts.
How the potential DraftsKings-Entain deal would affect the US poker operation remains to be seen. One potential scenario could find MGM buying its partner out in the US operation. MGM made its own Entain buyout attempt earlier this year in an $11 billion all-stock offer.
The company rejected that and DraftKings has now upped the ante for Entain with a mix of stock and cash . CNBC believes that value is $20 billion but other media outlets have disputed that figure. Some in the industry believe the offer overvalues Entain. Other considerations Either way, there are some ramifications for the US regulated online poker market. Could DraftKings […]
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