The US casino group said in a statement on Tuesday that it would not make a firm offer to owner Ladbrokes Entain, following a “careful analysis” and “recently limited commitment”.
Shares in Entain rose 25% after the disclosure of MGM’s offer, indicating that investors believed that a larger offer would come from either MGM or another competitor. Following Tuesday’s announcement, Entain shares fell 15% in London. MGM shares increased by 2.6%.
MGM, a major player in Las Vegas, said it remains committed to BetMGM, its existing joint venture with Entain. BetMGM, a sports betting and online gaming company, operates in more than a dozen US states.
“We remain committed to working with Entain to ensure that its strong momentum continues, as it is expected to be operational in 20 states by the end of 2021,” MGM CEO Bill Hornbuckle said in a statement. .
Entain recalled that sentiment in a regulatory record as he promoted his credentials.
“Entain has a clear growth and sustainability strategy, backed by state-of-the-art technology, which is confident that it will deliver significant value to stakeholders,” the company said.
The next steps of the British company will have to involve the search for new leaders, the CEO Shay Segev giving up at the end of this year. The announcement that he will leave Entain to run a sports streaming platform was made just days after MGM’s offer was rejected.