The UK gambling giant Entain PLC, the owner of some of the most popular brands on the market, such as Ladbrokes, Coral, Sportingbet, is reportedly aimed at pursuing the betting operations of Tabcorp.
As reported by the AFR Magazine, Entertain is willing to take over the betting division of Tabcorp and expand its horse and sports betting business to the largest one on the territory of Australia. The British gambling company’s interest in such an acquisition deal has made Tabcorp call in its bankers and start considering options for the unit in question.
The betting business of Tabcorp is licenced to run fixed-odds betting and totaliser betting in most states in Australia. The unit generates earnings of approximately AU$400,000 every year and some market experts believe it could be worth about AU$2.8 billion as a standalone business.
Australia is not a new market of Entain, as the British gambling company already has a small presence in the local horse and sports betting market thanks to its Ladbrokes brand. According to analysts, Ladbrokes’ current market share in the sector is about 4%. In comparison, Tabcorp’s share of the market has been estimated at 43.7%.
Earlier today, Tabcorp confirmed that it had received several “unsolicited approaches and proposals” to take over its financially struggling betting and media business. The Australian gambling group further shared that its board took the proposals into consideration but there was no certainty such transaction would be finalised.
Entain Seeks Expansion Only Weeks after MGM Resorts Withdraw Takeover Offer
Previously, Entertain has considered making a bet for part of the Australian betting unit of Tabcorp, including at the time when Macquarie Group and several other financial investors that in 2017 made an attempt to break up Tatts Group. The effort resulted in a takeover deal, in which Tabcorp acquired Tatts Group and merged the betting businesses of the two companies.
The rumours of the pursuit of Tabcorp’s betting operations come only a couple of weeks after Entain’s suitor MGM Resorts announced that it had decided not to proceed with another acquisition bid for the UK gambling company. As Casino Guardian previously reported, the US casino operator tabled an £8.1-billion takeover offer for the Ladbrokes and Coral owner earlier in January.
However, the UK gambling giant rejected the bid, saying that MGM Resorts’ offer underestimated its value. The two companies are already working in collaboration, as they currently operate their joint venture business in the US, called BetMGM. Under the provisions of the UK laws, the US casino company had until February 1st to make a firm acquisition bid but, eventually, it decided not to.
Now, MGM Resorts would be able to make another takeover offer to Entain after six months, if it is still in pursuit of acquiring the UK gambling company’s assets and expand its presence in the well-regulated British gambling sector.
- Author
Olivia Cole
