Daily Management Review

US bookmaker DraftKings turns down purchase of UK rival Entain


US betting company DraftKings said it rejected an offer to buy UK betting and gambling company Entain Plc.

Drew Amato
Drew Amato
"After several discussions with Entain's management, our company has decided that it will not make a detailed offer to buy Entain," said DraftKings head Jason Robins.

The talks between DraftKings and Entain were announced on September 21. Entain includes well-known betting firms such as Ladbrokes, Bwin, BetMGM (JV with MGM Resorts), Sportingbet, as well as gambling companies PartyPoker, CasinoClub and others. The size of the possible deal was estimated at $20-22 billion.

Following the announcement, DraftKings shares rose 5%, while Entain shares fell 7%.

In January, US gaming and hotel operator MGM Resorts had already made an offer to buy Entain for $11bn, but the British said the offer "significantly undervalues" its business. The US company refused to increase the amount.

source: bloomberg.com