Speculation Grows That MGM Could Make an Offer for Entain

According to investors Entain could still be a target for MGM Resorts for a full takeover, this comes even thou the boss of MGM recently said the company would not be making an offer for the owner of Ladbrokes at present.

However with Entain posting promising results and the company enjoying  its share value rising by 50% over the last three years, there was a dip of 15% when MGM said it was not looking to acquire its partner in the successful BetMGM brand.

Many investor experts believe the MGM bid will not materialise until the UK government release of the Gambling reforms White Paper, the contents of which could impact on the shares not just of Entain but all UK facing gambling companies.

Estimates have it that the White Paper could be released in time for Easter and a decision then by MGM will be made.

The BetMGM business is rapidly expanding with recent results by Entain showing it had increased net gaming revenues of 781% to $1.4 billion over the last year and this year the business is expected to hit revenues of between $1.8 to $2 billion and have a market share of all US sports betting of 20-25% over the long term.

With 33 US states already having sports betting along with the District of Columbia and Nebraska, Maine, Georgia, Kentucky, and Minnesota all looking to enter sports betting soon BetMGM will only get larger and the temptation for MGM to make an offer will only increase.