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BetMGM’s part owner on Monday said it would pay up to £122 million ($160 million) for an analytics firm that will better enable it to offer parlays to American sports betters.
Entain
ENT,
said it’s paying at least £81 million for Angstrom Sports, and possibly more, depending on contingencies it didn’t identify. Angstrom is a specialist provider of sports modeling and data analytics. Entain said it’s making the deal for the fast-growing markets of parlay and in-play wagering.
Parlays are typically risky bets requiring multiple outcomes to pay off.
“The combination of Angstrom’s innovative data-driven capabilities alongside Entain’s global scale and market-leading platform will offer our customers an unrivalled U.S. sports betting experience. Enriched in-house capabilities will provide a significantly greater number of betting opportunities, optimised parlay and in-play products as well as accelerating pricing expertise and risk management, delivering margin enhancement over the long term,” the company said.
Entain is the 50% owner of BetMGM, alongside MGM Resorts International
MGM,
Entain declined to comment to MarketWatch.
Analysts at Citi said a deal was considered likely after Entain announced a £600 million equity raise, which was mostly used in its deal to buy Polish sports betting operator STS
STH,
In the first quarter, BetMGM had net gaming revenue of $470 million, up 76% year-over-year.
