MGM Could Make Another Run at Entain’s BetMGM Stake
Posted on: January 22, 2025, 04:59h.
Last updated on: January 22, 2025, 04:59h.
It’s been four years since MGM Resorts International (NYSE: MGM) offered to acquire BetMGM partner Entain Plc (OTC:GMVHY). At least one analyst believes it’s possible the casino giant could revisit such a proposal this year.

In a new, broader report on gaming equities, Macquarie analyst Chad Beynon mentioned MGM could consider another play for Entain. The two companies are 50/50 partners on BetMGM and the Las Vegas-based casino operator has made clear over the years that it would like to control all of the online gaming entity.
While the company attempted to acquire its joint venture partner in Entain in 2021, we believe likelihood could increase given management transition, current share price (Entain shares are -36% over the last year, market cap of ~$4.8bn), and potential synergies,” observes Beynon.
Given the erosion in Entain’s share price and its aforementioned market capitalization, it’s possible MGM could significantly reduce its 2021 offer of $11.06 billion and still get the Ladbrokes owner to come to the bargaining table. Four years ago, the British bookmaker said the offer isn’t adequate.
What MGM Really Wants From Entain
The aforementioned takeover bid floated by MGM was for the entirety of Entain, but analysts and investors widely believe the casino operator simply wants the 50% of BetMGM it currently doesn’t own.
Assuming that’s true, it’s possible MGM could make an offer to acquire that stake, which would be more cost-effective than a full takeover of Entain. In October 2023, former Entain CEO Jette Nygaard-Andersen said joint ventures don’t last forever, indicating there could be some willingness on the company’s part to consider divesting its BetMGM interest if the price is right.
In a deeper examination of MGM shares, which he described as a value play, Macquarie’s Beynon mentioned six potential 2025 catalysts for the stock — two of which directly pertain to the online business and one of which is “taking full control” the online unit.
“BetMGM has carved out a solid position as the number-three US Online Gaming operator, occupying the leading position among the ‘Tier 2’ companies,” noted the analyst. “BetMGM achieved profitability in 3Q and recently launched single app single wallet in Nevada. We expect BetMGM will deliver its first year of profitability in 2025.”
Entain Could Be Motivated Seller
Owing to management change and pressure from activist investors, Entain could be more motivated today than it was four years ago to talk with MGM about a deal. Nygaard-Andersen resigned in December 2023 and activist investors have previously pushed for cash-raising asset sales. Parting with the 50% interest in BetMGM would fit that bill.
Eminence Capital founder Ricky Sandler — a vocal critic of prior Entain leadership — has a seat on the board and Keith Meister’s Corvex Management has a stake in the gaming company. Meister is a director at MGM and his hedge fund has an equity position in that operator.
Those could be among the signs that the stars aligning for MGM to consider run at Entain this year, though neither company nor those investors have said talks are being held.
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