The BetMGM Tie-Up between Entain and MGM Resorts May Not Last Forever

BetMGM is one of the world’s biggest and most influential gambling brands. A joint venture between MGM Resorts International and Entain, the operator continues to expand its global presence in key regulated markets. However, the current 50/50 ownership arrangement between its two parent companies may not be everlasting.

During a recent speech at the Global Gaming Expo (G2E) in Las Vegas, Jette Nygaard-Andersen, Entain’s CEO, made a remark that caught the attention of many industry enthusiasts.

Joined on the panel by Bill Hornbuckle, MGM’s chief executive, Nygaard-Andersen talked about the two companies’ partnership. While she praised the tie-up between the two companies, she also teased that the partnership is unlikely to continue forever, at least not in the same format.

According to Entain’s CEO, BetMGM’s ownership structure may very well change in the future because “joint ventures don’t last forever.”

MGM May Re-Attempt Its Takeover

While Nygaard-Andersen didn’t provide any other information about potential changes to the partnership with BetMGM, her words sparked discussions about the future of the brand.

Many believe that MGM Resorts will eventually try to secure ownership over the entire BetMGM brands, in line with Hornbuckle’s previous statements. This may also be the perfect time for a takeover, considering Entain’s recent financial trouble.

This wouldn’t be the first time MGM has tried to acquire Entain either, following an $11.06 billion attempt in 2021. After that failed attempt, MGM seemingly gave up on acquiring its partner company but the deal might be brought up once again considering Entain’s woes.

Hornbuckle Says MGM Has Recovered from the Recent Attack

During the G2E panel, Hornbuckle also discussed the recent cyberattack MGM was subjected to. He reassured the panel audience that MGM is now fully operational and said that his team did not pay the ransom to the hackers. For reference, Caesars, which also suffered a similar attack, is rumored to have paid millions to the cyber criminals.

For reference, the cyberattack had forced MGM to shut down many of its systems and caused Moody’s to issue a warning that MGM’s credit rating might be lowered. The attack is also expected to have a noticeable effect on the casino and hospitality giant’s Q3 earnings and may cause it further trouble because of lawsuits filed by concerned customers.

On a more positive note, Hornbuckle told the audience that BetMGM may roll out a shared wallet solution in the US, allowing customers to use the same wallet in all states where the brand is legal.