View from the City: What 2024 could hold as potential M&A targets emerge

This year has been tough for the quoted gambling companies, with the majority seeing their share prices decline. We suggested at the beginning of the year that companies would need to start highlighting the value in their businesses, through demergers or disposals, or else activists would come knocking at the door. That has come to pass.

While GiG has proactively looked to separate its platform and sportsbook operations from its media business (with the demerger of the former slated for H1 2024), and GAN’s strategic review has led to a recommended offer, 888 Holdings and Entain have found themselves incurring the wrath of disgruntled shareholders.

Flutter Entertainment, one of the few whose share price has gained year-to-date, took a different approach to dealing with the ‘value issue’ and is sacrificing its Dublin stock exchange listing for a New York one. The expectation is it will become the operator’s primary listing in time, reflecting the expected dominant contribution from its FanDuel business.

Perhaps the most impressive performance has come from DraftKings, with an improved operating performance and lack of new state openings transforming its expected cash position, leading to speculation on just what it could do with it. Caliente, 888 and Tipico have all been mentioned as possible outlets, while some observers have suggested bet365 could be the ultimate prize.

Despite recent management changes, Superbet remains an attractive asset which, reportedly, continues to target an IPO next year.

What appears certain is that 2024 will see more corporate activity as consensus forms around the future path of interest rates reducing one barrier to financing. This and the conclusion, hopefully, of the UK’s consultations from the white paper will present a more stable backdrop for deal-making.