After regulators limited its permit over business practice issues, the Nevada Gaming Commission granted a temporary three-year license May 20 to British sportsbook, Entain. The Nevada Gaming Control Board had concerns about Entain’s dealings in markets that were unregulated.
In response, Entain attorney Mark Clayton told the Commission the company expanded its board portfolio, added new non-executive directors, and tightened up its procedures. The goal is to emphasize regulated markets, responsible gaming, and sustainability, according to CDC Gaming Reports.
“We believe this demonstrates that the Nevada Gaming Control Board and Nevada Gaming Commission’s trust in Entain in 2019 was well placed,” Clayton said.
Commission Chairman John Moran believes the company has gotten on top of the situation.
Another commissioner, Deborah Fuetsch, said Entain is “almost there on the trust” and once the company “cleans up some litigation and outstanding legacy issues,” it will be.
She gives the company an A for effort.
Entain CFO Rob Wood said revenue increased 28 percent in 2020 and adjusted earnings were up 50 percent. Revenue during the first quarter rose 32 percent.
“We’re the 50th largest company on the London Stock Exchange and, more important, we have the flexibility and firepower to pursue our strategy,” Wood said. “One of those growth strategies is around mergers and acquisitions.”
Entain partnered with MGM Resorts International to form BetMGM, which has a presence in 12 states.
In other Entain news, the company—parents of U.K. bookmakers Ladbrokes and Coral—rejected MGM Entertainment’s offer of $11 billion as too low and appointed Jette Nygaard-Andersen, an existing board member, as its CEO. Now Entain is considering a bid to purchase William Hill’s non-U.S. assets from Caesars Entertainment. The non-U.S. assets accounted for 80 percent of William Hill’s sales last year, according to Bloomberg.
In April, Entain purchased Enlabs AB, a Swedish online betting company with a stake in the Baltics. It’s also making a pitch for a portion of Australia’s Tabcorp Holdings Ltd., a potential $2.7 billion deal.
Other transactions of note include the merger between Bally’s Corp. and Gamesys Group Plc, as well as Apollo Global Management Inc.’s purchase of the Venetian in Las Vegas.
Nygaard-Andersen believes there will be a convergence between online betting and digital entertainment, such as video games. She doesn’t think it’s too far-fetched to add a real casino to Grand Theft Auto or Fortnite. The global online gambling market is expected to grow by double digits annually to as much as $158 billion by 2028. That’s sparked a global race by casino operators, sports team owners, media companies and private equity firms looking to establish a strong position in the fast-growing business.
Entain is not the only suitor. Other private equity firms include CVC Capital Partners and Blackstone Group Inc. Flutter Entertainment Plc CEO Peter Jackson said the company is always in the market to expand its market.
“If there were customer databases or other things that we could acquire in European markets, we’d look at it.”
