MGM Resorts International and GVC Holdings have announced a joint 50/50 venture, which will see each partner commit an initial $100m, aimed at creating “a world-class sports betting and online gaming platform in the United States”.
Designed in the wake of the repeal of the Professional and Amateur Sports Protection Act (PASPA), the partnership is to see the establishment of a seperate headquarters, which it is detailed will be located in a “major US technology hub”
In addition a new leadership team is to also be formed, encompassing talent from each company as well as new hires, with a four-person board of directors, comprised of equal MGM and GVC representation, overseeing ongoing operations and growth.
Jim Murren, chairman and chief executive officer of MGM Resorts, commented: “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.”
Leveraging the multitude of assets and experience of each organisation, the new link up provides a clear to path to access fifteen states with an approximate population of 90 million.
The agreement is to “have exclusive access to all U.S. land-based and online sports betting, online real money and free-to-play casino gaming, major tournament and online poker,” with entry into a plethora or gaming verticals facilitated by the playMGM and partypoker headline brands.
Furthermore, full integration between the MGM Resorts and GVC loyalty programs is to be enjoyed, “enhancing the user experience and value proposition for existing and future customers.”
Kenneth Alexander, chief executive of GVC, added: “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.”