MGM Resorts offers $607 million to a Swedish online gaming company

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MGM Resorts International is looking to expand its online business internationally, saying it has made a bid to acquire a European mobile gambling operator for $607 million.

LeoVegas AB, which is listed on the Nasdaq Stockholm Stock Exchange, offers online casinos and sports betting products in several countries in Europe. The deal, if approved, would expand the Las Vegas-based casino operator’s online reach. In the United States, MGM operates the online betting brand BetMGM in a joint venture with British gaming company Entain PLC.

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“Our success with BetMGM in the United States gives us more conviction than ever about the potential of digital gaming and our ability to grow our market share in the exciting new market,” MGM chief executive Bill Hornbuckle said Monday. , in a call with Wall Street analysts.

A security guard patrols the now closed MGM Grand hotel and casino after all casinos and non-essential businesses in the state were ordered to close due to the coronavirus Wednesday, March 18, 2020 in Las Vegas. (AP Photo/David Becker/AP Newsroom)

LeoVegas’ board of directors said in a statement Monday that it recommends shareholders accept the offer. The offer acceptance period begins on or about June 3 and ends on or about August 30, the company said.

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MGM Resorts posted net sales of $2.9 billion for the three months ended March 30, up 73% from $1.6 billion in the same period last year , as the casino industry recovers from the Covid-19 pandemic closures. Results also benefited from MGM’s agreement to take full ownership of the operations of the Aria and Vdara properties on the Las Vegas Strip last year, the company said.

Las Vegas, Nevada, USA – September 15, 2018: Main Street in Las Vegas-East The Strip in the evening. Casino, hotel and resort-MGM Grand. (iStock/iStock)

The company reported a net loss of nearly $35 million for the quarter, compared with a net loss of about $336 million in the same period last year.

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MGM attempted international expansion last year with a bid to acquire Entain. The company rejected MGM’s offer, saying the offer of £8.09 billion, or about $11 billion, was not enough.

Las Vegas, Nevada, USA – February 2019: Panoramic view of Las Vegas Boulevard with the New York Hotel on the left and the MGM Grand Hotel on the right. (iStock/iStock)

MGM operates casinos in the United States and in Macau, the gambling hub of China. It is also pursuing development of a $9 billion casino resort in Osaka, Japan.

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