MGM Resorts and Entain Deal Collapses EMEA
Rollercoaster New Year saw MGM Resorts’ £8bn buyout offered, rebuffed and retracted, while its target - Entain, lost its CEO and could lose its acquisition
A dizzying few days at the start of January saw MGM Resorts look to secure its digital footprint with the acquisition of its platform partner, Entain. Ten the wheels came off...
UK ONLINE GAMING
UK - Hard Rock picks up Ritz Club licence Hard Rock International has acquired the casino premise licence from The Ritz Club in London, UK. Hard Rock intends to seek out and establish a new casino premise in London, complementing Hard Rock offerings in international cities such as New York, Paris, Amsterdam, Madrid and more.
"We look forward to expanding our brand offerings within London and bringing our award-winning hospitality, gaming and entertainment to the birthplace of Hard Rock," said Jim Allen, Chairman of Hard Rock International.
The Ritz Club (which opened in 1998) had suspended casino operations on March 19, 2020 as the UK entered its first Covid-19 induced lockdown. The Club was part of the Ritz Hotel, which was sold the same month. In June, the casino wrote to members informing them that doors would remain closed permanently. The casino had made an £8.9m loss in 2018 and an £11.3m loss the previous year.
Greece - Intralot extends OPAP partnership OPAP has exercised its two-year extension option of the contract with Intralot for the continuation of the collaboration of the two companies in the field of numerical lotteries and services from August 2021 to July 2023. This extension allows INTRALOT to continue providing its Lottery Solution, that incorporates its novel core platform “LotosX”, launched with great success in 2019, along with several other components and high-quality services across OPAP channels.
Holland - Dutch Gaming Association founded Stakelogic has become a founding partner of the Dutch Gaming Association and will provide its full suite of classic and video slots to operators through the DGA’s platform. Stakelogic will also develop exclusive slots that will be available to operators that use the DGA platform. The offering of exclusive slots has proved to be a very effective means to increase player retention.
Stephan van den Oetelaar, CEO of Stakelogic, said: “The Dutch market provides tremendous opportunities for operators that can enter the market fast, with content that appeals to the Dutch player preferences and is supported by a platform that is fully compliant with the new Dutch regulations.”
Sweden - Trustly plans €9bn IPO Swedish payments firm Trustly plans to take advantage of a surge in digital transactions in the COVID-19 pandemic with a Q2 flotation that could value it at up to €9bn. Trustly’s owner, buyout group Nordic Capital, is working with Goldman Sachs, JP Morgan and Carnegie and is in the process of hiring more banks with a view to launching the IPO in late April or early May.
P8 NEWSWIRE / INTERACTIVE / MARKET DATA
MGM Resorts has announced that it does not intend to make a firm offer for Entain. Citing ‘limited recent engagement between the respective companies’, MGM has said it does not intend to submit a revised proposal and will instead evaluate a ‘range of compelling strategic opportunities’.
Entain had previously informed MGM it believes the £8bn all-shares takeover offer significantly undervalued the company and its prospects.
Te news follows the shock departure of Entain’s chief executive. Shay Segev was appointed CEO in July 2020 after Kenny Alexander’s 13 years at the helm.
MGM’s CEO has sought to assure investors that BetMGM, the US sports betting and online gaming venture with Entain, remains a key priority for the company.
Bill Hornbuckle said: “We believe that BetMGM has established itself as a top three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021.”
J.P. Morgan gaming analyst Joe Greff has said in a research note that MGM ending its pursuit of Entain doesn’t change the company’s ability to
“secure equity value” from the growing U.S. sports betting and igaming market.
“We interpret the news as Entain’s shareholders wanting much more than what MGM was willing to offer,” Greff said.
Te news coincides with Alta Fox Capital Management, one of the largest shareholders in Enlabs, labelling Entain’s £250m offer for the company as ‘inadequate’.
MGM Resorts both initiated and pulled out of talks with Entain over a two week the period at the start of the New Year. On January 4, the board of Entain, owner of British high street bookie Ladbrokes, released a statement in response to the MGM Resorts’ bid, stating that the £8.1bn offer 'significantly undervalues the company and its prospects.'
On January 7, Entain announced it has made a £250m bid for Enlabs through its subsidiary, Bwin. Tis news was followed by the aforementioned rebuttal from Alta Fox Capital, condemning the offer. Te whirlwind of news continued on January 11, as CEO Shay Segev announced his departure from Entain to become co-CEO of DAZN. Entain has since appointed board member Jette Nygaard-Andersen as CEO. For more news on this saga turn to Tird Bridge’s analysis on page 34.
Slovakia Digitain secures new partnership with Orion Tip
In the early hours of the New Year, Digitain announced a new partnership with Slovakia’s licensed sports betting operator, Orion Tip.
Digitain will be providing its multi-channel igaming platform solution to Orion Tip, as well as its sportsbook and comprehensive portfolio of gaming, esports and skill games.
Tis partnership means a significant increase in Digitain’s retail coverage, with its full suite of products being integrated into Orion Tip’s existing network of nearly 700 retail terminals.
Simon Westbury, head of sales for Digitain, commented on the new agreement: “We are extremely pleased to welcome Orion Tip to the Digitain network of partners.
To join forces with one of the key operators in Slovakia is a great win for us and we look forward to developing our relationship in the future. Teir success will be our success.”
Milan Chocholak, COO for Orion Tip, stated: “After a really great deal of research, we established that Digitain provided the best overall solution for us. As licensed operators we had to ensure full compliance with our regulator’s requirements – Digitain more than exceeded our needs in that area.
“Plus, they have a great suite of products too – we have been especially impressed with their sportsbook offering. Teir ability to offer us a best-in-class online and mobile user experience as well as meet our needs for our retail network has been excellent.”
Europe
BMM has launched its Quality Assurance testing services for the European gaming industry.
Marzia Turrini, EVP of Europe and South America for BMM, said: “We are investing heavily in hiring and training and leveraging what is clearly the best QA capabilities in the world of gaming. We will use a combination of BMM QA resources to service our European customers, who are demanding improved functional, security, and performance testing prior to product certification. Tey understand the importance of quality product deployment as brand enhancement and cost containment. BMM has been doing this for a very long time and will make the difference in that quality and cost.”
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