The sports betting industry’s market share and value are growing. There are reports that it can reach $59.5 billion by 2026. As the industry grows, some of its key players are trying to lead the race.
One of those companies is DraftKings, which grew into one of the biggest fantasy sports operators before the Supreme Court’s 2018 legalization of sports betting.
Reports are coming that DraftKings has made a $22.4 billion offer to purchase Entain, Party Poker’s UK-based parent company, co-owner of BetMGM, and other European gambling companies.
In the US, Entain operates together with MGM Resorts, one of DraftKings’ biggest rivals. Earlier this year, MGM Resorts submitted an $11 billion offer to purchase its partner, which was rejected.
MGM Resorts does have a say in any takeover proposals for Entain from other US companies.
After the news broke, Entain’s shares jumped by over 18% on the London Stock Exchange, while DraftKings’ value plummeted by 7.4%. The UK company’s value was about $18 billion after the increased valuation.
So far, 2021 has been busy for Entain. In January, the company’s CEO, Shay Segev, resigned and was replaced by Jette Nygaard-Andersen, the first woman appointed as CEO of a UK gambling company.
Later in the year, the company offered to buy the Swedish gambling company Enlabs and Australian Tabcorp in deals worth $440.16 million and $2.72 billion, respectively.
In the US, Nevada granted Entain a three-year interactive gaming license. While the UK-based company was applying for a permanent license, Nevada did not accept that due to Entain’s unlicensed gaming activity in various countries.
DraftKings has until October 19th to make a firm offer.