Ladbrokes owner Entain sees revenues rise ahead of US takeover offer deadline

Entain owns the Ladbrokes bookmakers business.

British gambling company Entain, the subject of a $22bn (€19bn) takeover approach from US rival DraftKings, has reported higher quarterly revenue, led by stronger betting activity at its fast-growing BetMGM joint venture.

Entain, home to Ladbrokes and Coral betting shops as well as the Bwin and Partypoker online brands, said net gaming revenue rose 4% in the three months to the end of September, while revenue from online sports betting jumped 12%.

The results come a week before a takeover rules deadline requiring DraftKings to make a firm bid for Entain or walk away. DraftKings' $22bn offer is double a bid Entain rejected from joint venture partner MGM in January.

Some analysts say that strong results and signs of progress on major initiatives, such as US expansion, could convince Entain to reject DraftKings' offer on the grounds that it undervalues its prospects.

Entain and MGM's jointly owned BetMGM online sportsbook grew its online gaming market share to 32% for the three months to the end of August. 

BetMGM is viewed as a major factor driving DraftKings' interest in Entain. The US venture has grown steadily and challenged FanDuel and Paddy Power owner Flutter, which is the number one player in the sports betting and online gaming market in the US.

Both betting giants saw little share price movement.

MGM has said that any deal in which Entain or its affiliates end up owning a competing business would require its consent.

-Reuters and Irish Examiner