BetMGM on display at MGM National Harbor in Oxon Hill, Md.
Photo:
Shannon Finney/Getty Images for MGM National Harbor
MGM Resorts International
is seeking to expand its online business internationally, saying it has made an offer to acquire a European mobile gambling operator for $607 million.
LeoVegas
LEO 42.49%
AB, which is listed on the Nasdaq Stockholm exchange, offers online casino and sports-betting products in several countries in Europe. The deal, if approved, would expand the Las Vegas-based casino operator’s online reach. In the U.S., MGM operates the BetMGM online betting brand in a joint venture with British gambling company
Entain
ENT 1.81%
PLC.
“Our success with BetMGM in the United States gives us more conviction than ever about the potential for digital gaming and our ability to grow share on the exciting new marketplace,” MGM Chief Executive
Bill Hornbuckle
said Monday on a call with Wall Street analysts.
LeoVegas’ board of directors said in a statement Monday that it is recommending that shareholders accept the offer. The acceptance period for the offer begins on or around June 3 and ends on or around August 30, the company said.
MGM Resorts
MGM 2.27%
reported $2.9 billion in net revenue for the three-month period ended March 30, up 73% from $1.6 billion in the same period last year, as the casino industry recovers after Covid-19 pandemic closures. The results also benefited from MGM’s deal to take full ownership of the operations of the Aria and Vdara properties on the Las Vegas Strip last year, the company said.
MGM Resorts International Chief Executive Bill Hornbuckle told analysts that the success of BetMGM is encouraging in terms of the potential for digital gaming.
Photo:
Ethan Miller/Getty Images
The company reported a net loss of nearly $35 million for the quarter, compared with a net loss of about $336 million in the same period last year.
MGM attempted an international expansion last year with a bid to acquire Entain. The company rejected MGM’s proposal, saying the offer of £8.09 billion, or about $11 billion, wasn’t enough.
MGM operates casinos in the U.S. and in Macau, the Chinese gambling hub. It also is pursuing development of a $9 billion casino-resort in Osaka, Japan.
Write to Katherine Sayre at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the May 3, 2022, print edition as ‘MGM Seeks Swedish Betting Firm.’
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
