Betting giants to unveil growth amid takeover speculation

Strong US results for the owners of Paddy Power and Ladbrokes, Flutter and Entain respectively, may spark a wave of acquisitions

Strong sales growth and profitability have attracted interest for betting firms. File picture

Gambling giants Flutter and Entain are expected to reveal another six months of strong growth amid speculation that their recent successes could result in mammoth takeover deals from the US.

Strong sales growth and profitability have attracted interest for betting firms, and shareholders will be keen to see continued momentum when Paddy Power owner Flutter and Ladbrokes owner Entain announce their latest figures on Tuesday and Thursday respectively.

Shares across the sector have been back on the rise after a wave of takeover activity, as mainly US-based firms look to the strong growth strategy of firms.

Flurry of takeovers

William Hill and Jackpot Joy owner Gamesys have already been snapped up in takeover deals by US casino operators, being bought for £2.9bn (€3.42bn) by Caesars and £2bn (€2.36bn) by Bally's respectively.

Ladbrokes and Coral owner Entain has seen its value continue to rise amid speculation that MGM Resorts could return with a new takeover bid after a multibillion-dollar deal collapsed earlier in the year.

Casino operator MGM is in a strong position to table a stronger offer after selling its Aria and Vdara resorts to private equity giant Blackstone. Investors will be keen to hear how Entain's US expansion strategy — which has helped make it so appealing to bidders — has continued to fare in 2021.

The online gambling market has expanded rapidly in the US amid the relaxation of sports betting rules in a number of states in recent months, with more expected to ease legislation soon.

• Press Association