British gambling firm Entain, the subject of a takeover approach from US rival DraftKings, reported stronger quarterly gaming revenue on Tuesday and said betting volumes at its UK shops were improving.
Entain, home to Ladbrokes and Coral betting shops as well as the bwin and partypoker online brands, said net gaming revenue rose 4 per cent in the third quarter, while revenue from online sports betting jumped 12 per cent.
Gambling volumes at its betting shops, a feature of Britain’s high streets for decades, were recovering toward pre-pandemic levels, while retail betting activity was “steadily rebuilding” in Europe, Entain said.
The company maintained its forecast for annual core earnings of £850 million to £900 million (€940.5 million - €1.06 billion).
The results come as Entain considers a $22 billion or £28-per-share takeover offer from DraftKings, double a bid it rejected from joint venture partner MGM Resorts International in January.
Like rivals, London-listed Entain has enjoyed a boom in online gambling through the pandemic, while recent sporting events like the Euro 2020 have helped revive sports betting.
Dealmaking in the industry is also heating up as the United States opens up to sports betting and companies look to expand into more developed betting markets like Britain.
Entain and MGM’s jointly owned BetMGM online sportsbook grew its online gaming market share to 32 per cent for the three months to end-August, compared with 30 per cent for the quarter ended June.
Analysts view fast-growing BetMGM as a major factor driving DraftKings’ offer for Entain. MGM has said any deal through which Entain or its affiliates end up owning a competing business would require its consent.
Under British takeover rules, DraftKings has until October 19th to either make a firm bid or walk away. – Reuters
