Will MGM still be willing to gamble on Entain?

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?