Speculation Grows MGM Will Make Another Bid for Entain

One of the companies said to have breached advertising rules

City analysts believe MGM Resort could again come in to make a bid for British gambling firm Entain but not until the gambling White Paper on gambling reforms is published.

MGM made a bid for Entain in early 2021 but the offer of £8.1 billion was rejected by the online gambling company that operates brands such as Coral, Gala Bingo and Ladbrokes as it believed did not value the companies potential properly.

However MGM are believed to once more want a crack at the UK based gambling business that it already has a partnership with in the US taking sports betting in the form of BetMGM.

Although no formal approach will happen immediately as MGM like other potential suitors are concerned what the government long delay gambling reform proposals will be, it is now expected no earlier than March this year.

Many observers believe that a deal with MGM is inevitable given their current tie up with BetMGM that generates currently £1 billion a year but MGM would have to top the current value of Entain which is £8.9 billion.

At present it is not clear if MGM is successful at acquiring Entain would want to keep its European assets or only the BetMGM brand and sell of the other businesses, similar to the deal with Wynn Resorts and William Hill.