Instead of using Entain’s platform, MGM Resorts is set to introduce the BetMGM brand into the Dutch market via LeoVegas’ technology platform. The initiation in the Netherlands marks the second expansion of the brand into Europe, following the brand’s successful launch in the UK in August 2023.The expansion mirrors the relative success of BetMGM in the U.S. market, where it is part of a joint venture between MGM and Entain. Gary Fritz, the Interactive President of MGM Resorts International, expressed his excitement about launching BetMGM in the Netherlands and emphasized the significance of the Dutch market in BetMGM’s global expansion strategy and vision to become a dominant player in international gaming. In the Netherlands, BetMGM will clash directly with BetCity, owned by Entain, mirroring the competitive dynamic prevalent in the UK where BetMGM contends with Entain’s brands, including Ladbrokes, Coral, and bwin.
MGM’s Global Outreach
MGM had harbored international expansion ambitions even before its acquisition of the Swedish operator LeoVegas in 2022 for $604 million. The iGaming platform of BetMGM leverages the LeoVegas’s proprietary technology. The company is likely to maintain Kambi as the provider of sportsbook technology for the operation in the Netherlands, like in the UK. The extended sportsbook partnership between Kambi and LeoVegas was announced in June of the previous year. Expecting a successful launch in the Dutch market similar to the UK, Gustaf Hagman, the CEO of LeoVegas Group, emphasised the significance of this expansion in their global growth strategy.
Is MGM Planning to Buy Entain’s Stake in BetMGM?
Rumors have surfaced that MGM may be considering acquiring the remaining 50% stake in their joint venture from Entain. Such speculations have been further fueled by Eminence Capital, an activist investor in Entain, suggesting this acquisition as a potential way to increase shareholder value amidst a stagnant stock price. In the meanwhile, Entain, which operates the Ladbrokes brand among others, is undergoing a strategic review process and many of its brands are rumored to be up for sale. Entain is also seeking a new CEO following Jette Nygaard-Andersen’s resignation amidst investor dissatisfaction. It was reported that MGM is not interested in purchasing the entire business of Entain, but rather just the joint venture. In 2021, MGM had proposed to acquire Entain for £8.1 billion, which was turned down by the operator. MGM Resorts International (MGM) is currently trading at $40.20 (-1.49%), while Entain Plc (GMVHY) is trading at $9.19 (-1.61%).
