Breaking News: Entain Considers Selling Partypoker
Partypoker, once a giant in the online poker industry, is now on the market for potential buyers. Entain, the current owner, is reportedly looking to sell partypoker as it is deemed a “non-core” asset. Speculations suggest that MGM Resorts and DraftKings are among the leading contenders for the acquisition.
The Rise and Fall of Partypoker
Partypoker’s journey has been marked by highs and lows. Once the largest online poker room in the US, it withdrew in 2006 following the implementation of UIGEA, forfeiting $105 million. Despite a return to New Jersey in 2013 and expansion to Ontario in 2022, global traffic has faced continuous decline, reaching a recent low of 660 concurrent cash game seats.
Potential Buyers and Market Value
Entain might sell partypoker along with other brands in its portfolio, including Coral, Crystalbet, Enlabs, Eurobet, Foxy Bingo, Foxy Games, and SuperSport. MGM Resorts and DraftKings emerge as potential buyers, with MGM eyeing the online poker technology that powers partypoker and other Entain brands.
Implications for BetMGM Poker
BetMGM Poker, a joint venture between MGM and Entain, could be impacted based on the buyer. Possibilities range from remaining unchanged to potential disappearance or securing a lease-back agreement from the new owner.
DraftKings’ Interest and Strategic Moves
DraftKings, known for aggressive acquisitions, is a likely contender. Its interest in partypoker could provide a platform for launching in Connecticut, where real money online poker is legal. DraftKings’ history of pursuing strategic acquisitions aligns with the potential purchase.
MGM’s Longstanding Interest
MGM Resorts’ interest in acquiring Entain dates back to 2021. If successful, it would gain full control of BetMGM, a lucrative joint venture. The ongoing developments surrounding partypoker could influence MGM’s renewed interest in acquiring Entain.
Future Developments and Earnings Report
Entain is set to report its full-year earnings for FY 2023 soon, providing insights into the company’s plans. The outcome of the sale and potential buyer could reshape the online poker landscape.
Q&A Section:
Q1: What led to partypoker’s decline in global traffic?
A1: Partypoker’s decline can be traced back to its exit from the US market in 2006, legal issues, and a continuous decrease in concurrent cash game seats.
Q2: Why is DraftKings interested in acquiring partypoker?
A2: DraftKings’ aggressive acquisition strategy aligns with its interest in obtaining partypoker as a platform to launch in Connecticut, where online poker is legal.
Q3: How might the sale of partypoker impact BetMGM Poker?
A3: Depending on the buyer, BetMGM Poker could remain unchanged, disappear, or secure a lease-back agreement, impacting its future operations.
About The Author
