GVC inks $200m US joint venture with MGM
MGM hails potential “instant leader” partnership with gaming operator
GVC Holdings has announced the signing of a $200m (£153m) joint venture agreement with US casino and resort operator MGM Resorts.
The JV will see the two companies work together on sports betting and gambling across the US, with a separate headquarters which will be located in a to-be named major US technology hub.
Both companies will select a leadership team comprised of individuals from each company and additional new hires. It will also see the formation of a four-person board of directors with equal representation from MGM Resorts and GVC to oversee the venture’s ongoing operations and growth.
The two companies have agreed to each contribute $100m as part of a 50/50 deal.
GVC CEO Kenny Alexander hailed the “truly exciting opportunity”, adding: “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.”
In addition to the sports betting opportunities, the joint venture will be able to leverage the online playMGM and partypoker brands, with full access to both company’s interactive businesses and integration with the existing MGM Resorts and GVC loyalty programs.
Jim Murren, CEO of MGM Resorts, said the partnership has the potential to become the “instant leader in technology, market access, sports relationships and brands.”
Murren added: “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 U.S. Together, we are creating a one-of-a-kind platform that we expect will dominate the US sports betting market.”
The access from the deal is further extended by a recent agreement between MGM and Boyd, which means both have the opportunity to offer online and mobile gaming in jurisdictions where either Boyd Gaming or MGM Resorts operate physical casino resorts and online licenses are available.
The combination is active in 15 states containing some 90 million people.
Follow this thread to the top for some nuggets from the investor call this morning https://t.co/M1JsjJnoj7
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