DraftKings Courts U.K.’s Entain With $22.4 Bln Offer as U.S. Sports Betting Spurs Deals

Entain, U.K.’s gambling firm, said on Tuesday that DraftKings, the top fantasy sports betting company in the U.S., has offered them $22.4 billion for a takeover. Entain also claimed that an earlier approach by DraftKings was rejected when they were willing to pay 25 pounds per share. 

The fantasy bet company has offered 28 pounds per share, leading to a purchase of 46.2% of the Entains share in $22.4 billion. With a recent spurt in the clients towards fantasy sports and betting, DraftKings is doing everything to generate profits. 

By acquiring U.K.’s Entain, DraftKings is going to have a hold on Ladbroke poker and Bwin online betting brands. 

Entain had already rejected an offer of $11 billion from U.S.-based MGM Resorts International. DraftKings said that offering an amount of $11 billion implies one is underestimating the company’s value. 

Given that MGM has earned more cash and Entain and MGM are already in a joint venture, it is highly likely that MGM will make a comeback with a higher offer. In the joint venture, BetMGM is running an online sportsbook that allows fans to bet on National Basketball Association and National Football League games. 

With the United States opening up to cardano sports betting, regional operators are willing to expand their sports betting ventures in the U.S.

MGM said that Entain requires consent from MGM before going with any venture that is likely to introduce a competitor in the U.S. market.