LAS VEGAS: MGM Resorts International and multinational sports betting and gaming group GVC Holdings Monday announced the establishment of a 50/50 joint venture to create a sports betting and online gaming platform in the United States.
The announcement of the joint venture, timed ahead of the upcoming professional football season, has the stated aim of leveraging the opportunities created by recent decision of the US Supreme Court overturning the federal Professional and Amateur Sports Protection Act, or PASPA.
PASPA had made it unlawful for a US state to sponsor, operate, advertise, promote, license or authorise sports betting, and for private individuals to do the same. Only four states maintained exceptions to this prohibition, most notably Nevada, which permitted sports betting in casinos, and as a result enjoyed a near-monopoly on sports betting in the United States.
GVC Holdings noted that the new venture will have exclusive access to all US land-based and online sports betting, online real money and free-to-play casino gaming, major tournament and online poker, and other similar future interactive businesses – facilitating entry into multiple digital gaming verticals under the playMGM and partypoker headline brands. The venture will also allow for full integration between the MGM Resorts and GVC loyalty programs, enhancing the user experience and value proposition for existing and future customers.
Under the agreement, MGM Resorts and GVC have agreed to capitalize the venture with initial commitments of $100 million per partner. The venture will establish a separate headquarters to be located in a “major US technology hub”. A four-person board of directors with equal representation from MGM Resorts and GVC will oversee the venture’s ongoing operations and growth.
“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,” said Jim Murren, chairman and chief executive officer of MGM Resorts. “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.”
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.”
