MGM Resorts International says it has no intention of selling its stake in BetMGM, as joint venture partner Entain is courted by DraftKings.
However it stressed that this proposal was not a firm offer, and as such did not reveal terms being discussed. Reports from CNBC – which Entain’s announcement was in response to – suggested the bid could come to $20bn, while sources suggested to iGB that it may be even higher than this.
MGM, for its part, pointed out that any deal in which its joint venture partner would run a competing US betting business would require the consent of MGM.
“MGM’s priority is to ensure that BetMGM continues to capture the growing US online opportunity and realizing MGM’s vision of becoming a premier global gaming entertainment company,” the business said.
“MGM believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives.”
The business added that it would work with both operators in order to find a workable solution moving forward.
“MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties’ objectives,” it said.
MGM had previously opened talks to acquire Entain, but the Ladbrokes, Bwin and PartyPoker operator said the $11bn bid seriously undervalued its business. MGM then opted against submitting a revised bid.