Both private equity firms have considerable histories in the gambling sector. Apollo runs The Venetian on the Las Vegas Strip and CVC holds a majority stake in German sportsbook giant Tipico.
Apollo Global and CVC Capital are rumored to be eyeing “a whole range” of Entain’s assets, according to The Sunday Times.
Both private equity firms have considerable histories in the gambling sector. Apollo runs The Venetian on the Las Vegas Strip and CVC holds a majority stake in German sportsbook giant Tipico.
Entain PLC hired Wall Street firm Moelis & Company in March to help realign the company’s focus and divest certain assets with special attention to Netherlands-based BetCity, Australia’s Ladbrokes, Sweden’s Enlabs, and Georgia’s Crystalbet.
Significant Changes at Entain
Entain has undergone significant changes that have brought about tons of speculation about the potential sale of some or all of its assets.
Barry Gibson, Entain’s Board Chair since 2019, just announced last week his intention to step down by the end of September, and current interim CEO Stella David will take his place. The company is also in search of a new permanent CEO after former CEO Jette Nygaard-Andersen resigned in December.
Gibson said this of Nygaard-Andersen upon her resignation:
“Under Jette’s leadership, Entain has executed a fundamental strategic shift towards regulated or regulating markets, overhauled its governance, transformed its operations, and significantly improved its customer offering.”
This quote points to the company’s emphasis on growth within regulated markets and its massive investment in acquiring sports betting companies, which expanded Entain’s gambling portfolio to 35 brands.
Entain last year had to pay a $737 million settlement in a Turkish bribery investigation that implicated the risky strategies pursued by former leadership regimes when the firm was still GVC Holdings.
According to The Sunday Times article, a new chief executive could be announced imminently.
What About BetMGM?
Entain notably owns 50% of BetMGM along with MGM Resorts. Gibson bucked at two approaches made by MGM back in 2020 and 2021 to acquire Entain’s share of one of the best online sportsbooks in the United States.
BetMGM achieved positive EBITDA for the second half of 2023, which helped to propel Entain’s online net gaming revenue to a 12% increase closing at $4.8 billion for the full year.
When Entain reported FY2023 earnings, it anticipated more regulatory headwinds in the UK and the Netherlands that could impact its FY2024 EBITDA, so the sale of other assets could free up resources to keep the ships sailing in these two key markets as well as in North America.
If 50% of BetMGM were to become available, that bidding process would likely attract a frenzy of interested investors.