BetMGM, the notable online gaming venture powered by a 50/50 partnership between market giants MGM Resorts International and Entain Plc, continues to thrive. However, this parity of ownership may not endure indefinitely.
In a recent keynote speech at the Global Gaming Expo (G2E) in Las Vegas, the CEO of Entain, Jette Nygaard-Andersen, hinted at a pivotal shift in ownership structure in the future. Notably, Nygaard-Andersen put forth these remarks flanked by fellow CEOs Bill Hornbuckle of MGM and William Carstanjen of Churchill Downs. All were part of a riveting dialogue moderated by CNBC’s Contessa Brewer.
“The 50/50 structure of BetMGM is anticipated to persist in the near future, but there will arrive a point when the online gaming operator will be controlled by different hands. Joint ventures don’t last forever,” said Nygaard-Andersen, deliberately choosing not to delve deeper into the specifics or proposed timeline for this significant development.
Her impromptu declaration amidst the presence of MGM’s CEO Hornbuckle assumes further interest given MGM’s open aspiration for sole proprietorship of BetMGM. Nygaard-Andersen’s comments come hot on the heels of an underwhelming third-quarter financial prediction by Entain, leading to speculation about MGM’s intent to launch a new takeover bid.
In the past, Entain had rebuffed a considerable takeover bid of $11.06 billion from MGM, deeming it inadequate. At present, with Entain’s market capitalization standing at $7.21 billion, the possibility of negotiations resurfacing with a less ambitious bid cannot be dismissed.
Meanwhile, Hornbuckle acknowledged the significant strides made by competitors FanDuel and DraftKings, asserting proposals for a unified wallet that would permit BetMGM users to conveniently utilize the app across different states.
On another note, Hornbuckle confirmed that the alarming ransomware attack on MGM was now a concern of the past, with insurance expected to provide ample coverage for the significant impact on the company’s earnings. He expressed optimism about avoiding a labor strike in Las Vegas and plans to replant trees in front of the Bellagio recently cut down in view of the upcoming Las Vegas Grand Prix.
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