GVC Holdings has followed up on its promise to make a splash in the opened-up US sports betting market by agreeing a $200m deal with MGM Resorts over a 50-50 joint venture.
MGM confirmed the story this morning, handing UK firm GVC – company that owns Ladbrokes, Coral and Sportsbet – exclusive access, with business in the US to be conducted mainly under the playMGM and partypoker brands.
Kenneth Alexander, chief executive of GVC, said: “MGM Resorts is a world leading entertainment business and the most trusted name in gaming, with the highest quality brands and management, and strong sports connectivity. This combined with GVC’s technology and experience in successfully building online gaming businesses across multiple markets presents a truly exciting opportunity for US players and our respective shareholders. To be able to team up with a partner with such pedigree and knowledge, particularly in the US, is a real opportunity for GVC.”
Jim Murren, chairman and CEO of MGM Resorts, said: “We are proud to join forces with GVC, the largest and most dynamic global online betting operator, with existing reputable and trusted operations in the US. With MGM Resorts’ expertise and leading position in key markets across the US, this historic partnership will be positioned to become the instant leader in technology, market access, sports relationships and brands.
“We are excited to benefit from GVC’s proprietary, best-in-class technology, digital customer acquisition expertise, and experience with adapting to new operating environments. GVC is unusually qualified due to their existing operations in the US. Together, we are creating a one-of-a-kind platform that we expect will dominate the US sports betting market.”
The commencement of the joint venture operations are subject to gaming regulatory approvals.
The news is a further boost for GVC Holdings follow on from a successful FIFA World Cup, which helped push online net gaming revenue up 18 per cent during the second quarter.
