UK ‘strikes deal’ to restart CO2 production; Entain shares surge on DraftKings takeover approach – business live | Business

Since the supreme court overturned a ban on sports betting, the market has been opening up state by state. Tens of billions are being spent as firms jockey for a leading position in a market that looks like it could be even more lucrative than anyone thought.

The market research firm Ibis World thinks US sports betting could be worth $55bn (£40bn) a year, about 17 times the size of the UK market.

How Entain and Flutter are faring in that race will be interesting. Both have launched major tie-ups with US partners but it’s the nature of the relationship between Entain and its American buddies MGM Resorts that will garner most attention.

In January, Entain knocked back an £8bn takeover bid from MGM, which decided it would rather own the spoils from their joint venture, BetMGM, than share them. Faced with short shrift from the Entain board and investors, MGM walked away, starting the clock on a six-month period during which takeover rules prevented it from having another tilt.

The moratorium expired in mid-July and Entain’s share price since then suggests the board was right to send the American suitor back across the Atlantic with a flea in its ear. Entain’s stock market value has soared to more than £11bn, meaning MGM will have to dig deep if it means business. Shareholders, who have already seen the value of their investments rise thanks to the accelerated movement online during the pandemic, will be licking their lips.