Entain has successfully completed the acquisition of Angstrom Sports in a bid to enhance the betting capabilities of the BetMGM platform.
Under the terms of the deal, Entain agreed to pay £81 million to buy the US sports analytics and modeling company. Additional performance-based payments totaling $122 million will be made over the next three years.
Entain CEO, Jette Nygaard-Andersen, commented: “We are delighted that Angstrom has joined Entain, enabling us to accelerate development of the Entain Platform bringing even more product capabilities in-house.
“Angstrom’s proprietary next-generation capabilities will unlock significant opportunities, particularly for our US sports betting offering through BetMGM. We look forward to working closely with the Angstrom team and are excited to provide our customers with an unrivaled sports betting experience.”
This acquisition will provide Entain with the opportunity to benefit from Angstrom’s expertise in forecasting, analysis, risk management and pricing in the US sports betting market.
The deal is intended to significantly improve BetMGM’s sportsbook operations, especially after criticism from MGM Resorts CEO Bill Hornbuckle over the summer.
At MGM’s second-quarter press conference, Hornbuckle told investors: “Candidly, our product is not where we want it to be. I think the moves that we’re now making though, with Entain, and with the moves we’re gonna make with Angstrom, as an onboarded partner for BetMGM will get us to a place where we’ll be back in that game in a meaningful way.”
The focus will be on improving BetMGM’s betting offerings to increase platform revenue. Long-term goals of the deal include increasing BetMGM’s share of the sports betting market to 20-25%.
Nygaard-Anderson spoke about the benefits Angstrom can provide to Entain and BetMGM: “In this case simulation, risk analysis and pricing around more complex products such as parlays and in-play products, which are more recreational customer-type products.
“This is a highly strategic move in accelerating our US strategy and we are excited to be bringing key capabilities in-house making us the only operator with full end-to-end capabilities for risk analysis and pricing across all forms of sports betting products. It also accelerates our ability to offer more tailored and personalized products for customers while optimizing margins through risk management and pricing.”
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