Entain’s stock price plummets following BetMGM’s UK declaration.
MGM Resorts has made a major announcement: the launch of its BetMGM operations in the UK, separate from its partnership with Entain in the US. This decision had a significant impact on Entain’s share price, which dropped by 5%.
In the past, MGM attempted to acquire Entain for £8.1bn ($10.3bn), but the bid was rejected. Now, MGM is entering the UK market under its LeoVegas brand for casino operations, while Kambi will handle BetMGM’s UK sportsbook.
It’s worth noting that BetMGM was originally a collaboration between MGM Resorts and Entain in North America. However, MGM will continue to operate the BetMGM brand in the US and Canada using Entain’s technology and platform.
As of now, Entain’s share price is £11.57, a significant decrease from £13.80 on July 10 when the company released its H1 report. This represents a 16% drop in just eight days.
Additionally, since the launch of BetMGM in the UK, Entain’s share price has fallen from £12.33 to the current £11.57, which amounts to a 6% decrease in just two days.
Despite the unconventional decision to not utilize Entain’s technology for its UK operations, a spokesperson from Entain expressed confidence, stating that MGM has been operating a UK online casino under the LeoVegas brand for a while. They also believe that this new launch will not have any impact on their business or the market.