Billion Dollar Boomerang: The MGM-Entain Buyout Rumours are Back

The rumor mill was in full force late last week as analysts flagged heavy mid-afternoon spikes in Entain PLC (ENT.L) on the London Stock Exchange. By Friday, the stock had moved up more than 5% from its intraday low up to 548p, as it appeared someone was accumulating the stock.

While it might not be uncommon for some consolidation buying here as the stock is down nearly 30% in just the past 6 months, the stock movement followed the announcement by non-executive director Ricky Sandler to step down early in the week. This following his decision to close out his Eminence Capital investment firm. Sandler had been in his position since 2024 when his company bought nearly 7% of Entain stock.

An Activist Departs and the "Sharks" Circle

Sandler was a long-time, outspoken critic of Entain’s strategy, particularly under former CEO Jette Nygaard-Andersen and the 2023 acquisition of STS Group. However, his tenure also faced significant headwinds, including substantial tax increases across several operating jurisdictions—most notably in the UK.

With Eminence winding down, Entain has taken great pains to reassure the market that the divestment of shares will proceed in an "orderly fashion," as the firm manages over £7 billion in assets to be liquidated.

Many viewed Sandler as a primary activist roadblock; his departure is seen by some as "clearing the deck" ahead of a major corporate transaction. When large swaths of stock are suddenly snapped up in late London sessions following such news, it is only natural for market "sharks" to sense blood in the water.

The Betaville "Feeding Frenzy"

The speculation reached a fever pitch following a report from Ben Harrington’s Betaville, a high-end financial rumors site known for tipping M&A deals long before official announcements. Using their signature culinary scoring system, Betaville labeled the report as “uncooked”—meaning raw gossip that may have a few "grill marks" of credibility.

The report suggested that MGM Resorts International is once again kicking the tires at Entain after a failed buyout attempt in early 2021. It also alleged that private equity giants CVC Capital and Global Apollo are either partnering with MGM or pursuing their own independent negotiations, with Deutsche Bank named as a potential advisor or financier.

The Powerhouse Partnership: BetMGM

MGM and Entain are already 50/50 joint venture partners in BetMGM, one of the most successful gambling ventures in North America. This entity is currently the third-largest sportsbook in the U.S., operating in nearly two dozen states and holding iGaming licenses in four others. They are fully licensed in Ontario and hold an Alberta license set to begin taking bets on July 13.

Interestingly, while BetMGM sites exist in the UK, Sweden, and the Netherlands, these are not part of the joint venture. MGM owns the brand name and entered the Entain partnership for North America only; BetMGM sites outside of North America are operated by LeoVegas, with all profits flowing directly to MGM.

For those looking to explore their platform's features and betting markets, reading a detailed BetMGM Sportsbook review can provide valuable insights into their latest North American offerings.

The Financial Stakes

In 2025, BetMGM reported $2.8 billion in revenue and $220 million in EBITDA. Estimates for 2026 project $3.1 billion in revenue and $325 million in EBITDA, with a long-term goal of $500 million in EBITDA by 2027. This is no longer "pocket change," even for global giants like MGM and Entain.

The partnership relies on a specific division of labor:

• Entain provides the technical backbone, including the highly-regarded Player Account Management (PAM) system and exclusive iGaming content.

• MGM provides the prestige of iconic brands like the Bellagio and Borgata, market access via physical casino licenses, and exclusive access to the MGM Rewards database, which boasts tens of millions of members.

The Case for Vertical Integration

MGM CEO Bill Hornbuckle has been vocal about the fact that licensing third-party technology is not a winning long-term strategy. With partner fees expected to run between 15% and 20% of EBITDA next year, MGM could potentially save $50 million to $100 million annually by 2027 if they owned the tech outright.

A buyout would allow MGM to:

• Eliminate high licensing fees paid to Entain

• License the technology and content to other global operators

• Realize massive synergies by combining UK and European operations

This shift toward vertical integration mirrors moves by competitors like Caesars and Hard Rock Digital, who have already brought their tech stacks in-house to create a "siloed" omnichannel experience.

A Window of Opportunity

The urgency for a deal is heightened by the belief that rising inflation and strained U.S. state budgets will pressure legislatures to legalize iGaming as a new revenue source. The longer MGM waits, the more expensive Entain—and the joint venture—could become.

With Entain’s stock down over 60% since MGM’s last failed bid of 1383p in 2021, the valuation is currently at a deep discount. Whether it is MGM or a private equity firm that finally makes the move, the consensus in the City is that Entain's days as a standalone entity may be numbered.