MGM is on the move in the United States! The online gambling giant has been cooking and making some blockbuster moves to expand its position in the country. Recently, they announced a multi-year partnership with MLB Players Inc. and will give it another try to acquire British bookmaker Entain.
Partnership With MLB Players Inc.
The partnership will give BetMGM an advantage to utilize MLB player brands by giving players specific offers by an advocate of MGM properties. This may be in a form of advertisements, promotions, and sweepstakes. MLB Player Inc.’s. group rights will also be featured when three or more players are present.
The BetMGM partnership is the latest in a string of partnerships between major league sports properties. In November 2018, MGM Resorts became an NHL official gaming partner. In January 2019, the company became an official gaming partner of the NBA. MLB will now become the third major league sports property to partner with MGM Resorts.
This is a significant partnership as MLB becomes the first major North American professional sports league to partner with a gaming company. The MLB-MGM partnership will help BetMGM in its quest to become the go-to destination for sports betting.
Evan Kaplan, managing director of MLB Players Inc., said “MGM Resorts’ global presence will also help strengthen the allegiance between baseball’s international fan base and our players.”
While Lance Evans, senior vice president of sports and sponsorships for MGM Resorts added, “This new partnership strengthens our commitment to the sport of baseball in the U.S. and around the globe”.
Benefits of MLB Players in MGM Casinos
MGM Resorts will also be the “Official Offseason Destination” for MLB players. Players who stay at a MGM property may receive perks through the contract’s specific programs, such as the MGM Rewards loyalty program, where rewards points can be earned in both the MGM Resorts and BetMGM applications. Xavier D. James, chief operating officer of the MLBPA said:
“This collaboration reinforces the importance of leveraging Players to facilitate marketing initiatives.”
MGM’s Attempting To Acquire Entain Again
MGM Resorts is once again attempting to acquire Entain, the parent company of Ladbrokes Coral Group. The two companies have been in talks since December 2020, but MGM withdrew its initial offer of $11 billion in January after Entain rejected it. However, MGM is now back with an improved offer and both companies are said to be “engaged in constructive discussions.”
While MGM has not yet made a new offer, other companies are showing interest in Entain. DraftKings for example made a $20-billion offering cash and equity. However, when it came down to it, no agreement was ever completed.
Monique Pollard, Director at Citi Research, said “Like other gaming equities, Entain is faltering this year… MGM would still need to offer a sizable premium if it makes another offer.”
The current climate in the U.S. gaming market is ripe for consolidation as many firms look to capitalize on the growth of sports betting and online gambling. If MGM is successful in acquiring Entain, it would create a gaming powerhouse with a strong presence in both the U.S. and Europe.