Entain CEO: BetMGM a “great marriage” for both parties
Jette Nygaard-Andersen talks up the prospects for the MGM Resorts- and Entain-backed operator but concedes that "joint ventures don't last forever"
Entain CEO Jette Nygaard-Andersen has voiced her support for the continuation of the BetMGM JV business with MGM Resorts International, labelling it a “great marriage” for both parties.
Nygaard-Andersen shared these comments at the annual G2E Conference in Las Vegas yesterday (10 September), as part of a keynote address on the same panel as her opposite number, MGM CEO Bill Hornbuckle.
When pressed about the JV, she said: “It is a great marriage, and we work really well together.
“I think the combination of Entain’s technology, product, and experience from running online sports betting and igaming across the world, coupled with MGM’s brand, omnichannel experience and their rewards program is a really strong combination.
“We work really well together, we’re fully focused on what we want to achieve, we’re very competitive and we want to make BetMGM the best it can be, and there is nothing in the structure today that prohibits that. So, for now, that’s the focus for us,” she added.
MGM CEO Bill Hornbuckle also expressed his support for the business during the keynote.
However, Nygaard-Andersen sounded a note of caution for the future when asked about the firm’s ongoing US operations, suggesting a possible separation at a later stage.
“The US is by far the biggest sports betting and gaming market in the world, with a long runway for growth, so we’re fully determined and dedicated to BetMGM here,” she said.
“Joint ventures don’t last forever, but it’s not something that we need to solve for now — it’s something that we can solve at a later point,” Nygaard-Andersen added.
MGM recently made the headlines in the UK with the launch of BetMGM UK, the first extension of the brand outside the North American continent.
The BetMGM UK brand is powered by technology obtained by MGM from its $604m deal to acquire LeoVegas, which concluded in September, as well as sports betting supplier giant Kambi.
When asked about MGM’s decision to launch its online brand in the UK, Nygaard-Andersen asserted her confidence in Entain.
“We’re used to competition every single day. The product that MGM launched into the UK is not based on our technology, so we are competing there just as we’re competing with everyone else.
“We’re one of the biggest, if not the biggest operators in the UK, and I don’t see that changing the competitive dynamic, as competitors are coming into the market every single day,” she added.
MGM Resorts is still dealing with the aftermath of a cyberattack on its Las Vegas and regional land-based resorts business which hampered its operations for almost a fortnight, resulting in the company facing a $100m adjusted EBITDA hit.
Addressing the issue of the breach, the Entain CEO confirmed there had been no impact to Entain through the MGM breach, despite the businesses sharing extensive technology links through the integrations surrounding BetMGM.
“We have best practices around cybersecurity. We believe in something called defence in depth, so that means that we layer our security and our protection.” Nygaard-Anderson explained.
“We have automated responses, we get threat intelligence, so we understand who’s out there that might want to try to get into our systems. So as a technology company that is on our agenda every single day,” she added.