Entain plc, the corporate parent of several prominent Euro-facing sports betting and iGaming brands, has seemingly reined in its earlier-announced plans to sell off its US-facing business-to-consumer (B2C) brands, notably including partypoker New Jersey (NJ).
Earlier this year, Entain announced a review of its US-facing services as part of a larger strategic review of its entire global B2C portfolio. The US part of the review quickly led Entain to declare partypoker and partycasino as non-'core' assets, and the company retained a London-based financial services firm to aid in finding a buyer for one of online poker's most storied brands.
On Tuesday, however, Entain announced that its entire global review was complete, and though a pullback on the planned Party sale was not directly declared, the company appears to have partly reversed course. Instead of a focus on Party, Entain is citing its Georgia-based CrystalBet brand as not being a core asset and is thus ripe for sale. (Georgia is a smaller eastern European country on the east coast of the Black Sea, between Turkey and Russia.)
As for Party, the iconic brand's previously planned selloff wasn't mentioned. Instead, Party figured indirectly as one of four key conclusions from the concluded global review. "There remains significant upside by focusing on delivery of the Group’s strategy of returning to organic revenue growth, expanding margins and winning in the US," Entain declared.
Nevada approval likely part of reversal
One part of the story behind Entain's reversal originates in Nevada. Last week, the Nevada Gaming Commission gave Entain unconditional approval to operate in the state, in part because of Entain's ongoing commitment to discontinue its services in black- and grey-market countries.
The approval would likely see Entain eventually emerge as a software provider for MGM Resorts Interactive, which has an operator's license for its casino properties in the state. Since Entain and MGM are 50/50 partners in the BetMGM brand, a future launch of a BetMGM NV (Nevada) online-poker site is a strong possibility. Entain could also license the partypoker name to MGM for the creation of a partypoker NV site. Whether one or both brands become a reality in Nevada, they would likely soon share a merged player pool with BetMGM or partypoker sites available in some other states.
Entain celebrated the NGC approval via a LinkedIn announcement on Tuesday. "The NGC’s decision is a testament to our journey as a business and our commitment to operate to the highest standards of governance, protecting our customers and operating in only regulated and regulating markets," Entain stated in part.
MGM, though, has dawdled on the matter of launching an online poker site in Nevada. Last month, its online entity received its 13th extension from the Nevada Gaming Control Board on its original approved application to launch an online-poker site in Nevada. Currently, Caesars' WSOP Nevada brand is the only site operating in the state.
The good news for Entain, and perhaps for MGM as well, may mask one hidden truth about the planned Party sale. That sale of the US-facing assets, largerly meaning partypoker NJ, was expected to raise perhaps £150 million. That's only three percent of the £5 billion the original PartyGaming empire was valued at nearly two decades ago, but it might still have been more than any buyer was willing to pay. Now, the Nevada approval effectively re-values the partypoker US assets even if that brand never returns to the Silver State.
