Revised: MGM Entain Merger Rumors Resurge
(AsiaGameHub) - Renewed speculation about a potential revival of MGM Resorts' bid for Entain sparked skepticism on Friday morning, but a deal may not be as implausible as some assume. M&A activity across the UK gambling sector remains robust as the new taxation framework takes shape and a transformed market landscape begins to emerge. In an interview with iGaming Expert, Ivor Jones, Equity Analyst at Peel Hunt, noted that while rumours of such a deal have surfaced repeatedly over the past five years, this time there may actually be substance behind them. There has been a surge in M&A speculation within the industry, most notably Bally’s apparent attempt to expand its presence through a reported offer for troubled operator evoke. As Bally’s pursuit of evoke becomes increasingly probable—despite seeming irrational—it underscores why it wouldn’t be surprising if MGM Resorts defied conventional logic and pursued its long-rumoured acquisition of Entain in this new regulatory era. Jones explained: “Although acquiring Entain’s 50% stake in BetMGM would be more strategically sound for MGM Resorts, Entain shareholders might prefer not to be saddled solely with the non-US business.” However, he suggested the timing could present a compelling opportunity for MGM, given the contrasting share price movements between the two companies. He added: “Since January 2021, MGM Resorts’ stock has risen by 21%, while Entain’s has fallen by over 50%, making a potential acquisition appear significantly more feasible for MGM.” This type of transaction aligns with concerns about how the recent tax increases have disrupted the UK gambling market, pushing operators toward consolidation amid ongoing regulatory and financial uncertainty. Jones further commented: “Within the broader context of the UK stock market, it remains an active period for takeovers—with more than 60 companies receiving bids in 2025 and several major deals currently underway.” Despite focusing heavily on growth in the US market in its latest financial update, MGM Resorts faces shrinking margins due to shifting dynamics driven by emerging prediction markets. While revenue continued to climb in the United States, BetMGM CEO Adam Greenblatt warned that the brand has seen rising marketing and customer acquisition costs. “They call themselves prediction markets, and they are buying sports betting keywords while also investing heavily in any sports media outlet willing to accept their money,” Greenblatt told investors and analysts. “They’re directly targeting sports bettors through their advertising, which drives up the cost of attracting new players. Some of these platforms even feature a ‘sportsbook mode’ designed to replicate the experience of traditional sports betting as closely as possible.” Despite ongoing instability in the UK caused by tax hikes and persistent challenges from the black market, the country’s established market structure may prove attractive to a global operator like MGM Resorts seeking diversification amid volatility in the US. This article is provided by a third-party. AsiaGameHub (https://asiagamehub.com/) makes no warranties regarding its content. AsiaGameHub delivers targeted distribution for iGaming, Casino, and eSports, connecting 3,000+ premium Asian media outlets and 80,000+ specialized influencers across ASEAN.
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