Not too long ago, MGM Resorts International and U.K.-based Entain discussed dissolving the 50-50 partnership in BetMGM, as Entain entertained discussions of a merger. If the merger went through, MGM wanted the other half of the sportsbook. The merger never occurred, and the sportsbook partnership went on.
But in 2023, who knows.
After a lackluster 18 months for the sports betting industry, something has to give, analysts say, fueled in part by an increasing emphasis on profits and a reduction in promotional expenditures, according to Casino.org. That something could be a new round of mergers and acquisitions. That something could signal MGM Resorts to go after Entain’s portion. It’s cheaper than buying Entain outright.
“I would expect to see a flurry of M&A activity in 2023 in the online gaming space in the U.S. and abroad,” said Ramy Ibrahim, managing director advising gaming and other industries at investment bank Moelis & Company, in an interview with Insider.
Then there’s Fanatics, the private company and sports retailer just getting its feet wet in the sports betting arena. Fanatics could acquire a company that can bolster its sports betting footprint.
Insider says consolidation this year may include deals to enter specified markets or regions.
Other possibilities could see Fanatics going public or FanDuel parent Flutter Entertainment listing its shares in New York.
Maybe European-based sports betting giant Bet365 enters the U.S. market, and Hard Rock International reinforces its iGaming/sports betting footprint in some form.
