MGM Resorts intends to gain full control of BetMGM
MGM Resorts International is considering taking full control of BetMGM, following DraftKings' new $22.4bn bid to acquire Entain.
According to its CEO, Bill Hornbuckle, if DraftKings reaches a deal to buy Entain, his company will work towards getting majority control of BetMGM and also to gain access to the technology that powers the business.
The terms of the agreement prevent the owner of Entain from operating BetMGM in the US without approval from MGM Resorts.
Bill Hornbuckle, CEO of casino operator MGM Resorts International, explained: “We’d have to come to some resolve. We have 50% now. I would like more. I would need more.”
Since the Supreme Court has legalised sports betting to expand beyond Nevada three years ago, online gambling has been growing fast in the US and BetMGM has become an important operator.
Hornbuckle made Entain an $11bn takeover offer, which was rejected. However, DraftKings has until 19 October to present a formal offer to Entain under UK takeover rules.
Regarding the agreement between MGM Resorts and DraftKings, Hornbuckle mentioned: “There’s a lot of ways to structure it. The only thing that would be successful for us is if we got control of it and had a technology that we could proceed with.”
He added that just licensing the technology (which includes sports betting odds and player account-management systems) doesn’t represent a long-term solution, and eventually, BetMGM would have to develop or acquire those skills itself.
Neither Entain nor DraftKings have made any comments yet regarding the possible terms of the deal.
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