Aaron Fischer, co-Founder of the Fischer Sports Betting & iGaming UCITS ETF – Acc (LSE ticker BETS) said: “We continue to expect a lot of M&A activity in the sports betting and iGaming market which will be good for long-term growth across the sector despite DraftKings dropping its $22 billion bid for Entain.
“The withdrawal of the bid has been positive for the BETS ETF in the short-term too as DraftKings stock is up 5% and as DraftKings is our third largest holding at 7% of the index that has driven a 2% gain for our index. DraftKings CEO Jason Robbins has said the company can grow quickly in the US without Entain.
“Investors did not believe in the strategic rationale of the bid and the deal was not expected to go through as Entain shares were trading 31% below the value of the DraftKings offer. A big challenge was that MGM, a major rival of DraftKings, would have had to vote for the deal as they have a joint venture with Entain called BetMGM and that was seen as unlikely.”
For more information please call 07977 550913