Demand for parlays leads BetMGM's part owner to pay up to $160 million for analytics firm

By Steve Goldstein

BetMGM's part owner on Monday said it would pay up to GBP122 million ($160 million) for an analytics firm that will better enable it to offer parlays to American sports betters.

Entain said it's paying at least GBP81 million for Angstrom Sports, and possibly more, depending on contingencies it didn't identify. Angstrom is a specialist provider of sports modeling and data analytics. Entain said it's making the deal for the fast-growing markets of parlay and in-play wagering.

Parlays are typically risky bets requiring multiple outcomes to pay off.

"The combination of Angstrom's innovative data-driven capabilities alongside Entain's global scale and market-leading platform will offer our customers an unrivalled U.S. sports betting experience. Enriched in-house capabilities will provide a significantly greater number of betting opportunities, optimised parlay and in-play products as well as accelerating pricing expertise and risk management, delivering margin enhancement over the long term," the company said.

Entain is the 50% owner of BetMGM, alongside MGM Resorts International (MGM).

Entain declined to comment to MarketWatch.

Analysts at Citi said a deal was considered likely after Entain announced a GBP600 million equity raise, which was mostly used in its deal to buy Polish sports betting operator STS .

In the first quarter, BetMGM had net gaming revenue of $470 million, up 76% year-over-year.

-Steve Goldstein

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07-17-23 1053ET

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