BetMGM ranks third in market share of sports betting in the U.S., certainly a respectable position even if behind DraftKings and FanDuel.
The sportsbook, a joint venture between MGM Resorts International and Entain, has to figure M&A may be the way to move up higher. To that end, on June 17, Entain purchased Angstrom Sports for some $266 million. The company is known for sports modeling capabilities in which technicians use simulations to calculate outcomes, information used to set effective prices in sports markets, according to SBC Americas.
“We are delighted that Angstrom will be joining Entain, enabling us to accelerate the development of the Entain Platform. Their next-generation forecasting, pricing, and risk management capabilities will unlock significant opportunities across BetMGM’s U.S. sports betting offering, particularly in the fast-growing markets of parlay and in-play wagering,” said Entain CEO Jette Nygaard-Andersen.
The deal could give a boost to BetMGM in its effort to close the gap from FanDuel and DraftKings.
The acquisition is set to close in the third quarter with payments scheduled over three years. Entain will pay a base consideration of $105.9 million for Angstrom, plus $159.5 million in contingent payments over the next three years. The release did not specify the terms of those payments.
“We’re excited to join forces with Entain to continue delivering unique and exciting betting opportunities across U.S. sports. Entain shares Angstrom’s passion for innovation and our partnership will enable us to realize our ambitions in bringing best-in-class products and experiences to sports betting customers through Entain’s market-leading global brands,” added Angstrom Sports CEO Sion Colley.
Founded in 2018, Angstrom Sports uses prediction-based modeling to price U.S. sports for operators, including:
- MLB
- NBA
- NFL
- PGA Tour
- NHL
- NCAA basketball and football
The purchase could also enrich BetMGM’s menu of betting options and capabilities, the parent company said.
The companies offered no time frame for fully integrating Angstrom’s technology into the BetMGM product.Entain owns 18 sports betting brands worldwide, according to its website. It acquired three of those most popular brands in multimillion dollar deals:
- Bwin
- Coral
- Ladbrokes
BetMGM should hit profitability by the end of 2023, the company previously announced.
Entain had already announced its acquisition plan for STS Group for £750 million. The company has been given antitrust approval from Poland to proceed. The purchase grants “a full in-house suite of end-to-end analytics, risk, and pricing capabilities” for BetMGM, which Entain owns in a joint venture with MGM Resorts, it said in a press release to SBC News.
Poland’s Office of Competition and Consumer Protection was “gratified with the conditions of its tender.” Poland could have squashed the deal since STS represented more than 51 percent of the Polish market. Entain has already set aside the majority of the funds after securing £600 million (US$772 million) just 24 hours after its announcement.
The acquisition bid will also utilize funds from EMMA Capital, for 25 percent of the deal. The Juroszek Foundations, which holds about 70 percent of the shares, expects to add their ownership into the offer.
The board of Entain will close comments in mid-August. The final closing will take place not too long after.
