Las Vegas’ famous Bellagio casino and gaming company Bwin will soon have the same ownership. MGM Resorts will bid $11 billion to acquire Bwin’s parent company Entain. Someone who thinks his worth is higher.
Looking to play poker online? Visit noaccountcasinos.io for various casino games including poker. You don’t need an account to start playing.
MGM Resorts International in Las Vegas
The industry of gambling and gaming will soon be making large-scale acquisitions. The MGM Resorts International (American casino group ) has also bid 11 billion dollars (about 9 billion euros) for the British Entain Group (owner of the well known Bellagio casino). Entain was not known as GVC until recently and is one of the world’s largest gaming and sports betting providers. Brands include Bwin and Ladbrokes, and they have a strong interest online.
Entain came from a series of mergers and acquisitions and initially declined the offer. The company said in a statement that the company and its prospects are “very underestimated.” Report this assessment to MGM. In addition, Americans must provide a “strategic basis for merging the two companies.” They will speak again in a timely manner, until then, Entain shareholders are advised not to take any action. The UK also pointed out that the law requires MGM to officially announce its takeover before February 1.
Shareholders look forward to higher offers
The two companies have been working together since they founded an online business joint venture in the United States in 2018. Entertain, which was still GVC at the time, provided the MGM brand, a technology for this. Both big companies in the industry accounted for $450 million, including another capital injection in mid-2020. This had been among the most important investments of GVC. They are clear market leaders.
Shareholders on Monday accused the Entain group of stocks, traded on the stock exchange earlier this year, of about $9 billion. On Monday, the price rose to 28%, which is higher than the 0.6 MGM share per share of MGM’s entertaining. This shows that investors are betting that supply will increase further. MGM’s share has also increased slightly. The market value of the US stock market is about $16 billion.
US sports betting is booming
There are currently two developments that make Entain interesting to MGM. On the one hand, there is an epidemic. Many casinos in the United States have to close to prevent infection, and players move to the Internet much faster than before the epidemic. MGM’s sales declined 90% in the second quarter of 2020 and two thirds in the third quarter. It is still under US $13 billion (about 10.5 billion euros) in 2019. On the other hand, the situation for Entein is much better: in the third quarter of 2020, online business increased sales by 12% and 25%. Sales in 2019 were 4 billion euros.
On the other hand, the US online gambling and sports betting market is currently growing rapidly. Sports betting has been legalized in many states over the past few months, making a Supreme Court decision in 2018. Finally, the desired taxation has made many precautionary measures interesting. Thus, some observers predict that it will surge to US$7 billion by 2025, while others believe that sales of $20 billion will be achieved by that time. Current trading volume is still around $1 billion, according to estimates. The market could be one of the biggest, according to Entain’s boss Segev. US online game sales are also expected to grow rapidly.