The US casino group, MGM, has proposed a considerable offer to buy the owner of one of the biggest UK operators. It has made an offer to buy out Coral and Ladbrokes' owner, valuing the bookmaker at an outstanding £8.1b billion. Entain, the owner of Ladbrokes and Coral, stated last week that it had rejected the deal. That rejection left MGM until the first of February to make a formal bid for the takeover or decide to walk away from the takeover deal.
UK Gambling Operators in High Demand
It seems that the demands for United Kingdom gambling companies became in high demand. It came after the United States eased its previously strict online sportsbetting regulations and laws. Such easing of the rules is going to pave the way for tremendous growth in an area that has been booming in the United Kingdom for years now. In the US, firms are now trying to snap up the experience that the United Kingdom has in the industry. They aim to use that experience to enhance their business and add it to their own land-based gambling venues.
The firms that want to take advantage of the regulations will have to partner up with a US firm to enter the market. MGM already has achieved a partnership with Entain in the United States. Their rival casino firm, Caesars, is expected to finish its takeover of UK firm William Hill in March, for a total of £2.9 billion.
MGM Latest Offer to Take Over UK Operator Entain
The last offer that MGM offered would give the investors of Entain 0.6 shares of the combined company for every share they already have. It means that the shareholders of Entain would own 41.5% of MGM if the deal is agreed upon. According to reports, the bid that MGM made is backed up by the largest shareholder of MGM, Barry Diller. Barry Diller is also the person who launched the American Fox TV Network.
History of Sports Gambling in the USA
Before the current changes, gambling on sports was banned in the USA since the 1990s. A glimpse of hope appeared when a Supreme Court ruling in 2018 allowed NJ to introduce it once again. That means that other states can now make their own decision to allow sportsbetting. That prompted a lot of regulators to follow the lead set by the state of New Jersey.
So what does that mean for UK operators and UK casinos? It means that we expect to see many takeover offers from US-based companies to acquire UK gambling operators. So they can fulfill the requirements of the new ruling of the Supreme Court.