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Entain shares fall as US partner reveals UK move
Shares in Ladbrokes owner Entain fell as its US joint venture partner MGM Resorts announced that it would launch an online betting site in the UK, without Entain’s technology.
MGM and Entain together ran the BetMGM brand in the US, which is one of the biggest betting operators in the country. Analysts had long seen the joint venture as “unsustainabe” though, with regular speculation that one company would eventually own 100% of the business.
MGM sought to buy Entain last year, but its bid was rejected.
Now, the US casino giant known for venues like the Bellagio is making a move on the Ladbrokes and Coral owner’s home turf with the launch of BetMGM here. Rather than using Entain’s technology, the site will use the platform MGM acquired when it bought Swedish company LeoVegas last year.
“BetMGM is a proven brand in the sports betting and iGaming space, and we look forward to welcoming international players into our platforms designed specifically for them,” said MGM Resorts CEO and President Bill Hornbuckle. “Today’s announcement represents a key step forward in our international growth strategy, which has been advancing rapidly since our acquisition of LeoVegas.”
Shares in Entain are down 4.7% to 1,175p.
“BetMGM, LLC, the joint venture between MGM Resorts and Entain, will continue to operate the BetMGM brand in the United States and Canada utilizing the technology and platform provided by Entain,” MGM said.
Entain said the launch did not impact its business.
It said: “MGM has been operating an UK online casino for some time under the Leo Vegas brand. They are not permitted to operate the BetMGM brand on the highly developed Entain platform utilising its advanced technology outside of the US and Ontario, Canada.
“The UK market is a highly competitive, well-regulated market where many brands operate and where leadership is gained through brand familiarity and high quality, in-house technology. Entain operates a well-known portfolio of respected brands as well as an established online and retail presence. We do not consider that this new launch will make any impact to our business or indeed the market.”
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