A massive wave of over US$1bn of legal bets on yesterday’s Super Bowl will put more focus on the value of Entain PLC (LSE:ENT)’s fast-growing US joint venture, BetMGM, according to analysts at Peel Hunt.
The FTSE 100 group, which as well as owning Ladbrokes, Coral and Party Poker, owns an equal share in BetMGM with MGM Resorts International (NSX:MGM).
Analysts at Peel Hunt said BetMGM was continuing to increase its share in the US sports betting and online gaming market, with just under 25% of the market as of December.
Furthermore, data by Geocomply, the company behind location detection software used by sports betting apps to detect virtual private network fraud, highlighted that it had executed 2.26 times more US geolocation transactions for this year’s Super Bowl compared to a year ago.
This more than doubling of legal bets highlights the growing US market for sports gambling, the broker said, with more than half of US states now allowing legal sports betting and more states coming.
Entain’s acquisition of Avid Gaming, the brand behind Sports Interaction in Canada, is also forecasted to contribute to short-term underlying earnings.
Peel Hunt re-issued its ‘buy’ recommendation and target share price of 2,400p.