It’s tough to crown one “king” of the sports betting world. So many platforms already exist, with more seemingly popping up every day. BetMGM and FanDuel are definitely two of the biggest, as they’ve been noted to hold a major market share of the sports betting landscape. But they’re far from the only ones, as the rest of the platforms are coming in strong. WynnBET is planning on spending $100 million on ads for the NFL season alone. And don’t count out other platforms like BetRivers, PointsBet, and Fox Bet. However, possibly the biggest name in sports betting right now is DraftKings. The platform is currently the leader in daily fantasy sports in the U.S. and has gained tons of popularity for its sportsbook offerings with the expanded legalization of sports betting. Now, they’re making more moves to dominate their field. Let’s take a look at their supposed proposition to acquire another gambling company and what the deal would entail.
DraftKings Makes a $20 Bid For Entain
If recent reports are true, DraftKings is about to make a major move. David Faber of CNBC has reportedly been told about DraftKings’ major move to acquire the U.K.-based sports betting company Entain. The offer is worth approximately $20 billion. Entain itself was just valued at $18 billion right before reports of the attempted acquisition were released.
With the news of the deal, stocks are already fluctuating. Today, Entain saw a major 17% jump in shares. Meanwhile, DraftKings shares fell around 6% in that time. In addition to cash assets, the deal would include DraftKings stock as a major part of the deal. While the official number hasn’t been given, the Entain board has given confirmation about the proposed deal.
A Bit More Background on Entain
It’s important to have a little background on Entain if this deal goes through. The company currently has licenses in 27 different countries, along with 20 offices spread across five continents. Entain currently employs over 24,000 individuals as well. The company was known as GVC Holdings until December of last year when they officially rebranded.
Entain owns an extensive array of brands. Some of these companies include Gala, PartyCasino, Coral, Crystalbet, and Eurobet. Additionally, they’ve collaborated with MGM to operate BetMGM, one of the aforementioned industry leaders in the U.S. This part of Entice’s portfolio, however, might complicate the deal.
It All Comes Down to MGM
Because of the pre-existing partnership between MGM and Entice, the deal isn’t cut and dry. Basically, MGM’s approval is needed for any deal involving Entain’s U.S. assets. According to a statement, MGM has to work with both Entain and DraftKings to find a solution that works for all parties involved.
This will be an interesting deal to see play out. The BetMGM platform has seen some major expansion recently, as evidenced by a major advertising blitz. Interestingly, this isn’t the only acquisition deal Entice has seen recently. MGM itself placed an $11 million bid on Entice earlier in 2021 composed entirely of stock. Entain, however, didn’t find the offer satisfactory and rejected it.