DraftKings drops $22.4M bid for Entain

Sports betting begins at Mohegan Sun Casino

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Sports betting begins at Mohegan Sun Casino Dsc 4582

DraftKings ended discussions about a potential takeover estimated at $22.4 billion of global betting operator Entain.

The deal would have given DraftKings a foothold in the worldwide gaming industry.

Entain owns a variety of overseas betting and iGaming brands, including Ladbrokes, Coral and bwin. It also has a partnership with MGM Resorts International to operate BetMGM.

Earlier this month, Entain asked regulators in the United Kingdom, where it is based, for an extension to Nov. 16 to allow DraftKings to solidify its offer. An extension became necessary when the two sides couldn’t reach a deal on a technology licensing agreement and governance structure for BetMGM, Bloomberg reported Tuesday.

The stock exchanges reacted to the news. In London, shares of Entain had fallen by 6.2 percent Tuesday. In New York, shares in DraftKings increased 6.5 percent.

“Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market,” DraftKings CEO Jason Robins said in a statement Tuesday.

Last year, MGM offered $11 billion for Entain, which was rejected for being too low.

–Field Level Media