Entain has confirmed the conclusion of a strategic review of its portfolio of markets, brands, and verticals by the board’s Capital Allocation Committee (CAC).
The review, which began in January following a disappointing 2023, was undertaken with the objective of “maximizing shareholder value and reflecting the operational progress of the business”.
The committee’s strategic review concluded that Entain “has the appropriate portfolio of diversified strategic assets, brands, capabilities and geographic footprint to ensure it is well positioned to deliver high-quality long-term growth”.
Citing Entain’s operations in the U.S., the committee recommended that the company continue to prioritize North American growth by focusing on the organic growth of its BetMGM brand.
BetMGM, a joint venture between Entain and MGM Resorts, was the one shining light of a poor 2023 for Enatin as it generated $2 billion in net revenue last year.
Entain came under fire from Eminence Capital CEO Ricky Sandler at the beginning of the year as he believed that the firm was not placing enough value on BetMGM. In an earnings call, interim CEO Stella David acknowledged that the joint venture proved more time-consuming than expected.
The CAC considered Entain’s key market developments and operational progress as part of the review. It acknowledged that BetMGM’s roadmap is advancing well, with new MLB and NBA sports betting markets leveraging newly acquired Angstrom‘s sportsbook tech capabilities.
Entain gain full access in Nevada
The review also noted that Entain had been granted an unconditional license by the Nevada Gaming Commission (NGC) to operate in the state. Previously, Entain had been operating in Nevada under a three-year limited license that expired this month.
In the past Entain had failed to gain an unconditional license in Nevada due to the NGC’s concerns over the company’s presence in unregulated markets. However, Entain’s new business plan included efforts to exit 140 unregulated markets.
“Whilst we still have more work to do to improve our operational performance, the Board is pleased with the progress Entain is making so far in 2024 in line with our strategy. The Group has the core strengths, brands, and products to be competitive across its markets and continues to be a global leader in betting and gaming,” explained Entain Chairman Barry Gibson.
Gibson will step down from his role as Chairman by September and will be replaced by current interim CEO David. He joined the Entain board in December 2019 and the company has credited him with playing an integral role in the transformation of the company from GVC Holdings to Entain.
