MGM Resorts offers $607M for Swedish online gambling company
LeoVegas’ board of directors is recommending that shareholders accept the offer
MGM Resorts International is seeking to expand its online business internationally, saying it has made an offer to acquire a European mobile gambling operator for $607 million.
LeoVegas AB, which is listed on the Nasdaq Stockholm exchange, offers online casino and sports-betting products in several countries in Europe. The deal, if approved, would expand the Las Vegas-based casino operator’s online reach. In the U.S., MGM operates the BetMGM online betting brand in a joint venture with British gambling company Entain PLC.
"Our success with BetMGM in the United States gives us more conviction than ever about the potential for digital gaming and our ability to grow share on the exciting new marketplace," MGM Chief Executive Bill Hornbuckle said Monday on a call with Wall Street analysts.
A security guard patrols the now closed MGM Grand hotel-casino after all the casinos and non-essential businesses in the state were ordered to shut down due to the coronavirus Wednesday, March 18, 2020, in Las Vegas. (AP Photo/David Becker / AP Newsroom)
LeoVegas’ board of directors said in a statement Monday that it is recommending that shareholders accept the offer. The acceptance period for the offer begins on or around June 3 and ends on or around August 30, the company said.
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MGM Resorts reported $2.9 billion in net revenue for the three-month period ended March 30, up 73% from $1.6 billion in the same period last year, as the casino industry recovers after Covid-19 pandemic closures. The results also benefited from MGM’s deal to take full ownership of the operations of the Aria and Vdara properties on the Las Vegas Strip last year, the company said.
Las Vegas, Nevada, USA - September 15, 2018: Main street of Las Vegas-is the Strip in evening time. Casino, hotel and resort-MGM Grand. (iStock / iStock)
The company reported a net loss of nearly $35 million for the quarter, compared with a net loss of about $336 million in the same period last year.
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MGM attempted an international expansion last year with a bid to acquire Entain. The company rejected MGM’s proposal, saying the offer of £8.09 billion, or about $11 billion, wasn’t enough.
Las Vegas, Nevada, USA - February 2019: Panoramic view of Las Vegas Boulevard with the New York Hotel on the left and the MGM Grand Hotel on the right. (iStock / iStock)
MGM operates casinos in the U.S. and in Macau, the Chinese gambling hub. It also is pursuing development of a $9 billion casino-resort in Osaka, Japan.