Earlier today, the UK gambling giant Entain reported an increase in its revenues. The revelations have been made only a few days after the Ladbrokes and Coral brands’ owner rejected the £8.1-billion takeover bid that the US casino company MGM Resorts had previously made.
The British gambling operator also confirmed reports that it had found a replacement for the departing chief executive Shay Segev. As Entain shared, Jette Nygaard-Andersen is to take the chief executive officer position to replace Mr Segev who is stepping down as of today but will remain available until July 8th in order to help his successor with her transition to the company.
The UK gambling giant reported a massive increase in the revenues generated by its operations in the US, where the liberalisation of the sports betting market is considered responsible for giving a huge boost to operators there. For the time being, Entain is partnering with MGM Resorts in the country, with the two companies operating their joint venture BetMGM together.
MGM Resorts expressed its willingness to take over its partner Entain so it could use the experience of the British gambling company in sports betting and online gambling, as well as of the opportunities its technology holds there. Its acquisition bid came at a time when UK gambling companies are increasingly becoming a takeover target of their US counterparts. William Hill has already agreed on a £2.9-billion acquisition deal with MGM Resorts’ rival Caesars Entertainment.
Entain Appoints New CEO Following Shay Segev Resignation
A Casino Guardian revealed, Entain rejected the takeover of the US casino giant because it considered the over too low. The latest trading statement of the UK gambling company now highlights the reason why its management believed the offer undervalued the operator.
Entain reported a 27% increase in its annual online net gaming revenue, with a 41% growth generated in the fourth quarter of the year. It also posted twenty consecutive quarters of double-digit growth in its digital net gaming revenue.
The joint venture of MGM Resorts and Entain – BetMGM – saw a massive online revenues increase of more than 130% in the year.
The situation with the takeover offer made by MGM Resorts got more complicated at the time when Shay Segev announced his decision to step down from the CEO position and to head to the Dazn sports streaming group. Today, he described 2020 as an “exceptionally challenging year” and praised Entain for its strong performance and its variety of brands, products, channels and territories.
It was the online gambling services that helped Entain generate its stable growth in 2020. Unfortunately, the company’s land-based gambling options in the UK, Ireland, Belgium and Italy faced the negative effect of the lengthy closures during the coronavirus restrictions.
The retail betting shops in the UK have been shut because of the Covid-19 crisis that cost them more than one-third of their gambling revenues on an annual basis.
- Author
Olivia Cole
