96% of shareholders
November 25th, 2023
The final price is lower than the initial offer due to exchange ratefluctuations
MGM Resorts is a leading provider of terrestrial casino entertainment and online gaming through the BetMGM brand. The company operates casinos in several U.S. states, and online sportsbooks operate live in major regulatory markets. This year, for example, it debuted in mobile sports betting in New York and iGaming in Ontario.
After the vote, Leo Vegas shareholders voted 96% in favor. The Swedish brand will receive approximately $640 million, less than the original $607 million, due to the volatility on May 2, 2022. MGM Resorts will pay $5.72 per share or SEK $61.00 if it acquires the leading European online brand.
The completion of the all-cash deal comes just four months after the U.S. company's first takeover bid, which it said in May provides an opportunity to create a large global iGaming business. Now, after the acquisition is agreed, MGM Resorts will take full control of the Stockholm-based operator this week when final share payments are available.
After the purchase, MGM Resorts will add a prominent European catalog to its already rich portfolio of gaming products, resulting in valuable synergies. This includes sportsbook brand BetMGM. The company shared that Leo Vegas's management plans to maintain their position as it will once again operate the company's international platform.
The company hopes to offset some of the BetMGM brand's losses by adding LeoVegas to its consolidated balance sheet. The deal will also finance the huge advertising and promotional costs of BetMGM, which has debuted in numerous North American iGaming markets over the past few years. The parent company had to pay $35.5 million in losses.
Expand to New Territories in 2022
This year, MGM Resorts succeeded in expanding into a new major regulatory market. For example, in January, the sports book debuted in the recently launched New York State mobile sports betting market. The company has become one of nine operators that can operate in the local market managed by the New York State Game Commission.