MGM and Caesars each already have a respective footing in the sports betting industry.
Now, just imagine how much that presence can grow if the hotel-casino giants merge.
Earlier in the week, sources told the New York Post that MGM and Caesars are reportedly considering a mammoth merger, although an offer hasn’t been made as of yet. The Post adds that MGM has hired the services of Morgan Stanley in addition to law firm Weil, Gotshal & Manges to help explore how to make this mega merger a reality.
Furthering the speculation is last week’s announcement from Caesars CEO Mark Frissora, who said he’ll be stepping down from his position in February.
“Everyone knows that without a CEO,” a source close to the situation told the Post, “Caesars is in play.”
With Caesars’ shares down 25 percent this year and MGM down 15 percent, it would seem like both parties could benefit from joining forces, especially in sports gambling — an industry that has been booming since the Supreme Court legalized it in New Jersey this past May. To give a glimpse of how big a potential merger would be, MGM is valued at $30 billion and Caesars at $22 billion, as reported by the Post.
And just the prospect has the hotel-casino sector as well as the sports-betting industry buzzing, especially in “Sin City.”
“If they did merge, they would have an overwhelming presence here in Las Vegas,” David Schwartz, director of UNLV’s Center for Gaming Research, told LasVegasNow.com.
He added: “I think these companies are always exploring their options through things like this. They’re always looking at mergers and consolidations, so it’s not really surprising MGM would be considering this right now.”
Considering the deal is intriguing enough. Pulling it off would be outrageous. Just imagine what MGM and Caesars can do within sports gambling under one brand and what it would mean for sports bettors.