MGM Resorts International recently revealed its $607 million proposal and its plan to buy LeoVegas AB, a popular iGaming operator. The American brick-and-mortar casino made the declaration in an official press release.
Its proposal includes buying the bookmaking enterprise’s and online casino shares for $6.16 each to continue growing digital gaming. The Las Vegas firm said its plan would enable it to widen its clientele by using LeoVegas AB’s brands, technology capabilities, and teams to drive its online gaming interests further.
Are There Any Current Concerns?
MGM Resorts International was founded in 1987. It runs 11 gambling sites on the Las Vegas Strip, such as the Bellagio Las Vegas, Excalibur Hotel and Casino, and MGM Grand Las Vegas. It recently disclosed its 2021 net revenues had risen by 88 percent year-on-year to $9.7 billion.
The gaming operator also manages leading casinos like MGM National Harbor, MGM Grand Detroit, and MGM Springfield. Also, it runs BetMGM online bookmaking service in collaboration with Entain, a British online gaming colossus.
The Deal’s Advantages
Bill Hornbuckle is MGM Resorts International’s Chief Executive Officer and President. He stated in the press release that the casino’s cash reserve would fully fund the LeoVegas AB offer, and it will instantly increase its cash flow per share and earnings.
The executive added that the deal would form an irresistible opportunity to realize LeoVegas AB’s potential in an omnichannel strategy once it ends. The resort’s vision is to be a leading entertainment firm globally, and the LeoVegas deal will help it serve players from various countries.
Gustaf Hagman and Robin Raman-Ericson founded LeoVegas AB in 2011, and it operates the LiveCasino, PinkCasino, LeoVegas, RoyalPanda, and GoGoCasino. The operator is based in Stockholm, and it generated $413.8 million in aggregate revenues in the year that ended in March. It had $50.5 million in adjusted revenue before amortization, depreciation, and tax.
The Offer’s Timeline
MGM Resorts International announced that its LeoVegas AB offer’s acceptance period would start in June 2022 and expire in August. It might seal any resultant deal in the second half of this year.
Its proposal is subject to customary closing conditions, certain regulatory approvals, and the support of 90 percent of its target shareholders. Hornbuckle is eager to welcome LeoVegas AB’s team to its team.
He stated that the resort would soon reveal its 2022 Q1 earnings. But it traded at about $41 per share on the New York Stock Exchange.
The Two Gaming Companies’ Ontario Operations
BetMGM Resorts International and LeoVegas AB operate in Ontario’s sports gambling and online casino markets. They were some of the first popular operators to launch operations in the Canadian province on April 4.
Ontario has a vast sports gambling market in North America. Also, it has a significant population compared to other provinces. It would have been after New York as the most significant state in sports betting if it was a state.
New York has succeeded in bookmaking since it launched on January 8. Its sportsbooks generated slightly less than $6 billion in revenue and over $412.34 million in gross gaming revenue as of April 24.
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