GMVHF - Entain Flutter 888 Holdings seen as potential takeover targets after UK white paper

2023-03-08 16:37:15 ET

Entain Plc ( OTCPK:GMVHF ), Flutter Entertainment ( OTCPK:PDYPY ) and 888 Holdings ( OTCPK:EIHDF ) could be potential takeover targets after the UK Gambling Commission's publishes its whitepaper .

The UK gambling regulator could publish its white paper by late March and gambling firms may be impacted due to maximum bets on online slot machines as well as limits on advertising, according to CTFN Sentinel piece . Industry players view that downside has already been priced in for the UK gambling firms and publication of the white paper may help provide more clarity on valuation that could attract M&A interest.

Entain ( OTCPK:GMVHF ), which has attracted bids from MGM Resorts ( NYSE: MGM ) and DraftKings ( DKNG ) in the past, could become a target as the white paper could "materially" change Entain's outlook and bring MGM back to making an offer even after MGM said last month it won't pursue Entain ( OTCPK:GMVHF ) or try to acquire the rest of BetMGM.

Flutter ( OTCPK:PDYPY ), which owns FanDuel in the U.S., could be another potential target after the white paper hits, according to CTFN. Caesars Entertainment ( CZR ) could acquire FanDuel for a "hefty" premium or possible purchase the entire gaming company.

888 Holdings ( OTCPK:EIHDF ) could also be a takeover candidate as its price has been held down by the pending whitepaper and its former CEO left in late January amid an alleged money laundering scandal.

Entain ( OTCPK:GMVHF ) is set to release its 2022 full year results on Thursday.

Also see SA contributor Howard Jay Klein's piece from last month entitled " MGM Resorts: Smart Corporate Strategy Is The Engine For Much Higher Valuation."

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