The CEO of Entain claims that the $22 billion DraftKings transaction was sunk because of a U.S. joint venture called BetMGM.

entain

Entain’s BetMGM online sportsbook in the United States was one of the reasons why DraftKings’ $22 billion deal to buy the British sports betting and gambling company failed last month, according to Entain’s CEO. Entain and NYSE-listed gaming giant MGM hold BetMGM, a US competitor to DraftKings.

MGM’s CEO had previously stated that if DraftKings had agreed to buy Entain, a move that would have made the combined company a competitor to MGM in the United States, he would have attempted to take control of BetMGM.

The snag has been seen as a roadblock in DraftKings’ pursuit of Entain for some time, but Entain Chief Executive Officer Jette Nygaard-comments Andersen’s are the first public confirmation from either party that the venture played a role in the deal falling through.

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