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Will MGM still be willing to gamble on Entain?

Francesca.washtell@mailonsunday.co.uk CITY WHISPERS Contributors: Luke Barr and Neil Craven

SHAREHOLDERS in Ladbrokes-owner Entain must have been struggling to read the runes last week.

First of all were the rumours, reported in The Mail on Sunday, that joint venture partner MGM Resorts is weighing a bid.

That was followed by the good news on Thursday that the joint venture in question, BetMGM had a buoyant 2022 with net revenues up 69 per cent to $1.4 billion (£1.1 billion), aheadof guidance.

So far so good. Entain will issue an update on its own trading this week. But the talk is that any bid from MGM depends on a Government gambling White Paper due next month.

Also on Thursday, Gambling Minister Paul Scully indicated to the Betting and Gaming Council that there are ‘still too many failings’ and the Bill could be more draconian than they had hoped.

Investment bank Jefferies noted the ‘negative tone’, adding that further consultations seem likely ‘thus adding uncertainty’.

Will that dampen MGM’s ardour?

O A TURBULENT time at Direct Line has not gone unnoticed. Having axed its dividend and issued a profit warning this month, short positions in the insurer last week hit their highest level in 10 years.

The FTSE250 company’s share price has crashed by 43 per cent in the past year, leading to the departure of chief executive Penny James last week.

Figures from the Financial Conduct Authority reveal the number of contracts out on loan for Direct Line has hit almost 3.5 per cent.

Short sellers will be celebrating this weekend, then, after the firm’s value fell on Friday to £1.75, its lowest ebb in five years.

Financial

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