MGM Resorts International Looking to Potentially Becoming Sole Owner of BetMGM Through Buyout

Since last year, the MGM Resorts International group has said they would like to buy BetMGM outright. 

The iGaming casino operator and sportsbook are currently split 50/50 with gaming company Entain PLC. Area executives say the purchase will only happen for many billions.

Mgm Resorts International Wants To Close The Deal With Entain

The Las Vegas-based casino operator made an $11.06 billion bid for Entain in January 2021. However, the British-based company argued that the offer was inappropriate. MGM did not make any new offer public but talks might be going on behind closed doors.

MGM is open about wanting to own 100% of BetMGM; CEO Bill Hornbuckle has previously stated as much. 

Now that the company is reaching profitability, the integrated resort behemoth may be more eager to acquire the digital gaming division. 

If the owner of the Bellagio extends an offer to Entain, it won't be cheap.

When switching to Entain, MGM — or any other US-based suitor — could have at least one thing working in their favor: The US dollar is one of the best-performing currencies in the world, making it strong, compared to the British pound.

According to a July client note from Citi analyst Monique Pollard, the Bellagio operator may be forced to reconsider a bid for the Ladbrokes owner due to the dollar's strength against the pound sterling.

Last Year, MGM Resorts Attempted To Control BetMGM Fully

Following DraftKings' latest offer to purchase Entain for $22.4 billion, MGM has spoken about acquiring complete or majority control of the BetMGM sportsbook and casino if that deal were to go through.

Bill Hornbuckle, CEO of MGM Resorts, said that if DraftKings and Entain struck an agreement, his company would attempt to acquire majority control of BetMGM and access to the business's technology.

The terms of the contract prohibit the owner of Entain from running BetMGM in the US without MGM Resorts' consent. Bill Hornbuckle said: "We would need to find a solution. We already hold 50% of BetMGM, and I would prefer greater discretion.'

Online gambling has expanded quickly in the US since the Supreme Court extended the legalization of sports betting outside of Nevada three years ago, and BetMGM has emerged as a significant operator.

Regarding MGM Resorts

MGM Mirage, often known as MGM Resorts International, is a business based in the American city of Las Vegas. In other parts of the world, the partnership runs and owns most hotels in North America.

Following the merger of MGM Grand Inc. and Mirage Resorts, Inc., the business commenced operations on May 31, 2000. The second-largest casino company on the earth right now is MGM Mirage.