MGM Resorts International is looking to expand its online business internationally, saying it has made a bid to acquire a European mobile gambling operator for $607 million.
LeoVegas AB, which is listed on the Nasdaq Stockholm Stock Exchange, offers online casinos 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 United States, MGM operates the online betting brand BetMGM in a joint venture with British gaming company Entain PLC.
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“Our success with BetMGM in the United States gives us more conviction than ever about the potential of digital gaming and our ability to grow our market share in the exciting new market,” MGM chief executive Bill Hornbuckle said Monday. , in a call with Wall Street analysts.
LeoVegas’ board of directors said in a statement Monday that it recommends shareholders accept the offer. The offer acceptance period begins on or about June 3 and ends on or about August 30, the company said.
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MGM Resorts posted net sales of $2.9 billion for the three months ended March 30, up 73% from $1.6 billion in the same period last year , as the casino industry recovers from the Covid-19 pandemic closures. Results also benefited from MGM’s agreement to take full ownership of the operations of the Aria and Vdara properties on the Las Vegas Strip last year, the company said.
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 international expansion last year with a bid to acquire Entain. The company rejected MGM’s offer, saying the offer of £8.09 billion, or about $11 billion, was not enough.
MGM operates casinos in the United States and in Macau, the gambling hub of China. It is also pursuing development of a $9 billion casino resort in Osaka, Japan.