MGM and GVC Partner in US Betting Venture
This has been a year packed with M&A activity for the world’s largest casino firms, and the trend is showing no signs of slowing year. In the spirit of this phenomenon, global operators MGM Resorts and GVC Holdings have now announced a joint partnership, under which they will be launching online and land-based sports betting services in up to 15 US states.
The companies will both contribute an initial US$100 million towards the venture under the terms of their deal.
The merger will pertain to two particular brands, PartyPoker and PlayMGM, and will see both operators poising themselves to expand into a brand new market once more American states begin to legalize real money sports betting.
CEOs Comment on the Enterprise
CEO and Chairman of MGM Jim Murren has commented on the potential-packed deal, noting that his company is proud to be joining forces with GVC – one of the largest and most powerful online betting operators in the world which already has an existing presence in the US.
According to Murren, pairing MGM’s expertise in key US markets with GVC’s formidable brand will create a historic partnership that could easily become a leader in sports technology, market access, and betting brands.
CEO of GVC Kenny Alexander has also shared his thoughts on the deal, noting that MGM is a world leader in the entertainment and gaming businesses, operating high quality brands and boasting unparalleled sports connectivity. According to Alexander, this combined with his company’s own experience and technological solutions will create a truly ground breaking experience for US punters and the firms’ shareholders alike.
New Board of Directors Coming Soon
Elaborating further on the nature of their new partnership, the two companies have noted that the new business will be based in what they termed a ‘major US technology hub’. The venture will also reportedly be assigned its own board of directors, with equal numbers of chair-people from GVC and MGM there to call the shots once the business is officially up and running.
Now, all that remains to be attended to is for the two international gaming giants to seek approval from the relevant regulatory bodies. Once granted, the firms can begin to scout for new sports betting markets in the US, which will open up as individual states exercise their new post-PASPA freedom and regulate their own respective betting markets for the first time ever.