Investors are showing more interest in the U.K.-based gambling company Entain since the departure of CEO Jette Nygaard-Andersen following a huge payout in fines to the government over a Turkish bribery scandal, Sports Handle reported December 21.
Investors are also bullish on the company, one of the largest gaming groups in Europe, divesting itself of BetMGM if MGM Resorts wants to buy out Entain’s 50 percent share in the joint sports betting venture.
Nygaard-Andersen’s resignation came in tandem with several board changes. This sparked a move by a hedge fund— Corvex Management LP— to buy about 28 million shares of the company, or 4.4 percent of total shares outstanding. This caused Entain shares to jump in value. Corvex is described by Sports Handle as an “activist investor.”
Corvex issued a statement: “We believe Entain is at a critical juncture and can benefit from the constructive engagement of a well-informed shareholder with substantial industry and company-specific experience and expertise.”
Some investors are hoping Entain will resume talks with MGM over the purchase, which fell apart in 2021 when MGM’s $11 billion bid was spurned.
Recently BetMGM published an optimistic view of sports betting in the coming year in its 2023 year in review. The operator reported a record handle and made big profits from last year’s March Madness.
BetMGM’s director of retail trading Matt Cosgriff has high hopes for 2024: “The trading team expects in-play wagering and player-prop betting to grow,” he wrote. “Live betting continues to increase in the overall percentage of handle, as more people enjoy ‘trading the games’ than just a pre-game wager.”
