BetMGM Partner Entain Receives License in Nevada
The license approval, which was granted unanimously by the Nevada Gaming Commission, included the licensing of several executives, including CEO Jette Nygaard-Andersen, who will become a member of BetMGM's governing board
Entain, a London-based company, is MGM Resorts International’s partner in BetMGM, holding a 50% stake in the sports betting operator.
Entain Executives Were Questioned about Social Responsibility and AML Failures
The Las Vegas Review-Journal reported that during the meeting on February 23, Nevada commissioners asked about Entain’s $20.4 million fine from the UK’s Gambling Commission in August for social responsibility and anti-money-laundering failures. The executives assured them that compliance procedures had been improved, particularly in relation to BetMGM.
MGM had shown interest in acquiring Entain in the past, but the company has confirmed that they are no longer considering a purchase. In January 2021, MGM offered $11 billion to acquire Entain, but the offer was declined, leading analysts to predict a potential bidding war.
However, during MGM’s fourth-quarter earnings call, CEO Bill Hornbuckle stated that the company has moved on from any potential deal, saying that they are no longer pursuing an acquisition. Thus, he dispelled any speculations about a possible combination of the two companies. Hornbuckle added that the primary focus now is on the growth of BetMGM’s business through their partnership with Entain.
MGM Resorts Will Pursue Other Possibilities with LeoVegas Acquisition
MGM Resorts is exploring alternate options with its acquisition of the Swedish online gaming company LeoVegas, with a deal valued at $607 million. LeoVegas is set to be acquired by MGM Resorts, after an overwhelming approval of 96% of LeoVegas’ shareholders to the takeover bid granted at the beginning of September 2022.
With the final regulatory approval received, MGM Resorts can proceed with the acquisition of LeoVegas, marking the company’s first major foray into online gaming outside the United States.
MGM Resorts CEO and president, Bill Hornbuckle, praised the move as a significant achievement for the company and welcomed the LeoVegas team. LeoVegas CEO Gustaf Hagman echoed Hornbuckle’s excitement and saw the acquisition as an opportunity to establish LeoVegas as the world’s largest iGaming brand.
MGM Resorts is expected to benefit from LeoVegas’ experience and expertise in developing online content and solutions, particularly as iGaming in the United States continues to grow.
By joining forces, the two industry giants are expected to create a formidable entity in the global iGaming industry. The acquisition will allow MGM Resorts to pursue operations outside of the United States, leveraging on LeoVegas’ established profile in overseas markets.
LeoVegas’ financial performance has been consistently strong, with the company posting solid results despite regulatory challenges, and the acquisition by MGM Resorts is expected to further boost the company’s performance.
Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.
