MGM Resorts International and GVC Holdings have committed to a second round of funding in online gaming and sports betting joint venture Roar Digital, increasing its investment to $450m.
Seeking to become the US leader in those aforementioned sectors, the second tranche of funding follows an initial prior commitment of $200m.
Both parties assert that the investment ‘underpins their commitment’ to ensure that BetMGM becomes the lead sportsbook and igaming business for the regulated US market, in which Roar will maintain $370m of investable capital for its expansion goals.
“We launched this business to combine the best of MGM Resorts and GVC, and establish BetMGM as a leading brand in the US sports betting and igaming markets,” explained Adam Greenblatt, CEO of Roar Digital.
“With broad market access secured, our long-term technology foundations now firmly established, and a high performing team in place, this further unequivocal support from our two shareholders will ensure we can achieve leading market positions in this exciting industry that is growing even faster than our initial expectations.
“BetMGM is on track to generate over $130m of net revenues this year predominantly from igaming in New Jersey given the impact of COVID-19. With the return of sports and our growing operations across the US, we anticipate rapid growth in the coming year.”
Lauding significant progress made since launch in 2018, Roar Digital currently boasts market access capabilities to 19 states, representing approximately 50 per cent of the US population. It has active operations in seven states with four more expected to launch by the end f the year
Moving forward, Roar is seeking to enhance its footprint across the nation further still built on its four core strategic tenets of market access, customer reach, technology and people.
“Sports betting and igaming are fundamental to what MGM Resorts does best,” said Bill Hornbuckle, acting CEO and president of MGM Resorts. “Our investment in Roar is a demonstration of our continued excitement about the unique benefit of offering unforgettable, premier entertainment experiences to millions of our loyal guests directly through BetMGM.
“We believe this competitive advantage places BetMGM at the forefront of the most dynamic growth opportunity in all of US gaming and will ultimately deliver meaningful long-term value for our shareholders.”