RRR - Investors bet on more M&A intrigue in the casino sector

Jefferies thinks the pursuit by DraftKings (DKNG -4.9%) of Entain (OTCPK:GMVHF +14.8%) could lead to MGM Resorts (MGM +0.6%) revisiting its own offer for the BetMGM partner. Analyst David Katz calls Entain an attractive takeout target, given its strong track record, growth profile and proprietary tech stack. "Benefiting from the MGM brand and loyalty database and ENT's technology, BetMGM has been a leader in MI with 23% of OSB handle and 41% of iGaming GGR market share in August," he notes. The deal is also seen raising the M&A profile in the sector as a whole. "We consider the prospects for larger scale M&A realistic given the aggressive push for market share in the nascent North American market. If the transaction were to occur, how might other players respond, FLTR/FanDuel, CZR, PENN and privately held Hard Rock?" A key factor with the casino/sports betting M&A landscape is if the acquirer

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Investors bet on more M&A intrigue in the casino sector