GVC Holdings pens joint venture deal with MGM Resorts
GVC Holdings and MGM Resorts, a US casino and resort operator, have announced a joint venture deal worth £153m to create a leading sports betting and gaming platform in the US.
The deal is a major success for GVC, with MGM owning resorts across the US. The two will partner on both sports betting and gambling, with a headquarters for each to be established in a yet unnamed major technology hub.
To oversee the project, a new leadership team will be created. This will consist of existing individuals from each company, plus a number of new hires. A four man board of directors will also be created, featuring two men from each company, to oversee operations and growth of the venture.
Each company will contribute $100m towards the project.
In the press release announcing the deal, GVC was quick to point out that both firms are established, market leading brands, that have access to market leading and state-of-the-art technology.
With the lifting of the ban on PASPA and sports betting in the US, the deal will of course have a focus on sports betting. But, MGM Resorts has strong brands across other verticals, such as the PartyPoker and playMGM online brands.
GVC are also set to benefit from an existing agreement between MGM and Boyd Gaming. That deal will allow the two to offer online and mobile gaming wherever Boyd Gaming or MGM operate physical casinos in the US. That deal currently includes 15 states with a reach of around 90m people.
Speaking about the venture deal, Kenny Alexander, CEO of GVC Holdings, 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. To be able to team up with a partner with such pedigree and knowledge, particularly in the US, is a real opportunity for GVC.– Kenny Alexander, CEO GVC Holdings
Jim Murren, the CEO of MGM Resorts, was also enthusiastic about the deal, stating:
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.– Jim Murren, CEO MGM Resorts