GVC And MGM Resorts In U.S. Talks On Sports Betting
Possible joint venture could create a US gambling giant
The big news breaking over the weekend is that UK online and land gambling group GVC Holdings has confirmed that it is in advanced talks on a joint $200 million US sports betting venture with MGM Resorts, one of America’s largest gambling corporates.
The proposed venture was widely reported in UK media Saturday, with GVC issuing a statement that read:
“The Group can confirm that discussions are at an advanced stage regarding such a joint venture and will update the market when appropriate”.
It is expected that a more detailed statement will emerge from the two parties on Monday.
Industry observers said the talks could result in the creation of a US gambling giant ideally positioned to leverage the recent liberalisation of US sports betting following the US Supreme Court decision which overturned the restrictive Professional and Amateur Sports Protection Act (see previous InfoPowa reports).
European companies like William Hill plc and Paddy Power Betfair plc have been quick to form American partnerships through their local subsidiaries in a market that has an estimated worth of over $100 billion a year.
Sky News, which broke the story, reported that the joint venture will initially be based in Nevada but will expand with the market. The broadcaster quoted sources who claimed the GVC-MGM venture involves a commitment of around 25 years with an option to buy each other out after ten. The two companies would initially each invest $100 million in the venture, Sky reported.
GVC and MGM already have a business alliance in New Jersey under the playMGM brand.
The deal could have wider reaching implications, according t some analysts, who said it could pave the way for a full merger between the two companies at some future stage.
US reports have also flagged industry speculation that GVC will be part of a Valley Forge Casino online gambling plan in Pennsylvania.
Valley Forge is one of nine Pennsylvanian land operators that has applied for a $10 million interactive gambling licence. However, the speculation is cautious due to the pending $280 million acquisition of Valley Forge by the Boyd Gaming, which has not indicated its position on the online initiative yet.
G.V.C. Confirms Deal With MGM Resorts (Update)
50/50 joint venture will create a world-class sports betting and online gaming platform in the United States
UK land and online gambling group GVC Holdings plc issued a statement early Monday confirming the breaking news over the weekend that it is in advanced talks on a 50/50 joint venture with US gambling giant MGM Resorts International (see previous InfoPowa report).
The statement reveals that the venture will create a world-class sports betting and online gaming platform in the United States, well-positioned to engage in the new opportunities created by the recent U.S. Supreme Court decision overturning the U.S. federal Professional and Amateur Sports Protection Act, or PASPA.
MGM Resorts and GVC will bring together market-leading assets, distinguished brands, proven and scalable proprietary technology, and extensive industry expertise to revolutionise the world of sports betting and online gaming in the United States, the statement declares.
The formation of the joint venture significantly increases speed to market for both parties in an efficient and prudent manner, lowers execution risk, and creates meaningful early mover advantages.
Kenneth Alexander, CEO 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 U.S. players and our respective shareholders. To be able to team up with a partner with such pedigree and knowledge, particularly in the U.S., is a real opportunity for GVC.”
Jim Murren, chairman and CEO of MGM Resorts, added: “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 U.S.. With MGM Resorts’ expertise and leading position in key markets across the U.S., 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 U.S.. Together, we are creating a one-of-a-kind platform that we expect will dominate the U.S. sports betting market.”
The new venture will 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, 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.
Combining the expertise of two multi-billion-dollar, industry leading gaming and consumer businesses with a track record of successful joint ventures and partnerships, the venture will bring market leading brands into the enterprise, leveraging existing consumer loyalty to drive results, the statement outlines.
MGM Resorts holds a portfolio of iconic, well-known brands that the venture will be able to utilise as it enters the online sports betting and gaming markets. GVC will also be providing a portfolio of strong and complementary sports betting and gaming brands, including partypoker.
In terms of technology, the venture will have access, both as an operator and as a supplier, to the proven, U.S. licensed, multichannel technology provided by GVC to create a leading platform with world class content and broad reach and distribution.
MGM Resorts has an established collection of market-leading properties in the United States, a database of over 27 million M life Rewards members, and has recently entered into an agreement to purchase the operating assets of Empire City, providing access to the densely populated, sports-heavy New York market. In addition, the joint venture will benefit from the MGM Resorts market access agreement with Boyd Gaming which provides a pathway to access a total of fifteen states with an addressable population of approximately 90 million.
MGM Resorts will leverage its substantial sports, entertainment, and professional league relationships for the benefit of the joint venture. With a portfolio including T-Mobile Arena, over 25 other arena and entertainment venues, and extensive relationships with multiple local professional teams and national leagues, MGM Resorts is a leader in the sports entertainment industry.
Under the agreement, MGM Resorts and GVC have agreed to capitalise the venture with initial commitments of US$100 million per partner. The venture will establish a separate headquarters to be located in a major U.S. technology hub, select a leadership team comprised of best-in-class talent from each company and additional new hires, and form a four-person board of directors with equal representation from MGM Resorts and GVC to oversee the venture’s ongoing operations and growth. Both parties are excited to announce the formation of the joint venture in anticipation of the upcoming professional American football season.
The commencement of the joint venture operations are subject to gaming regulatory approvals.
Boyd Gaming And MGM Resorts International Ink New Deal
Both online gambling and sports betting the goal in ‘unprecedented partnership’
Hot on the heels of its monumental joint venture with GVC Holdings announced over the weekend (see previous InfoPowa reports), MGM Resorts International and Boyd Gaming unveiled Monday what the two companies are calling an ‘unprecedented partnership’ focused on the future of both online gambling and sports betting around the US.
The two major gambling corporates have casinos in a combined 15 states, and said they will work together on online casino, sports betting and poker as opportunities crop up in new states. The deal’s goal, a press release from MGM declares, is “to significantly increase each company’s market access and customer base throughout the United States.”
MGM and Boyd will both have the opportunity to offer online and mobile gaming platforms – including sports betting, casino gaming and poker – in jurisdictions where either Boyd Gaming or MGM Resorts operate physical casino resorts, and where online licenses are available.
The two corporates have worked together before, holding equal stakes in Borgata New Jersey until MGM bought out Boyd in 2016 (see previous InfoPowa reports).
MGM CEO Jim Murren said in a statement Monday:
“We are excited to team yet again with Boyd Gaming on this unprecedented partnership, which allows us to fully engage with the almost 30 million M life Rewards members throughout the country. We look forward to expanding our entertainment options for guests beyond their visits to our land-based resorts.”
“Our industry is evolving, providing opportunities for growth through new forms of gaming like online and mobile gaming,” said Boyd Gaming president and CEO Keith Smith. “Thanks to our partnership with MGM Resorts, Boyd Gaming will have the opportunity to potentially add an online presence in five additional states, positioning us for significant future growth as our respective companies take a leadership role in our industry’s evolution.”
MGM Signs As Official Betting Partner For US National Basketball League
Probably the first of many deals with the sports leagues
MGM Resorts International hit the US major deals headlines again Tuesday with its joint announcement that it has signed a sports betting sponsorship deal with the National Basketball League that could be worth up to $25 million.
Industry observers noted that this is the first such agreement, but it will probably precede many others following the strike down of the Professional and Amateur Sports Protection Act by the US Supreme Court in May this year (see previous InfoPowa reports).
The agreement allows MGM to use league highlights, names, logos and its direct data feed for live betting with the NBA and WNBA. MGM will soon launch a mobile sports betting app and the league’s properties will appear on the app, according to an ESPN report.
The NBA has been one of the more open and liberal leagues on the issue of sports betting since 2014, and has lobbied for a financial cut of the sports betting action in the form of an “integrity fee”. it is unclear whether integrity fees are included in the three-year MGM contract, but the league is being compensated.
The American Gaming Association praised the compromise, saying such payments should be negotiated via contracts rather than mandated by legislators:
NBA Chief Commissioner Adam Silver and MGM Resorts President and CEO Jim Murren announced the partnership in a joint statement, saying that for the first time the NBA will open its commercial network to sports betting.
“This historic partnership will bring millions of NBA fans and MGM Resorts guests together through an innovative collaboration that will open new and exciting opportunities to engage with each other’s world-class brands and products” Silver and Murren said in a joint statement.
“Our collaboration will result in the best possible gaming and entertainment experience for consumers through the use of accurate, real-time NBA and WNBA data, and our collective efforts to maintain and enhance the integrity of our games.”
MGM’s resorts and sports betting products will be promoted across NBA’s media assets including NBA TV, NBA.com, the NBA App and NBA social media platforms, and the two organisations will work together on special digital content and other integrations.
MGM Resorts Goes Live In Mississippi With Sports Betting (Update)
Group properties Beau Rivage Resort and Casino in Biloxi and Gold Strike Casino Resort in Tunica the first to offer bets
Mississippi joined Delaware and New Jersey Wednesday as the first states to start accepting sports bets following the recent overthrow of the Professional and Amateur Sports Protection Act by the US Supreme Court.
MGM Resorts International properties Beau Rivage Resort and Casino in Biloxi and Gold Strike Casino Resort in Tunica were the first to offer bets Wednesday on the opening day.
Industry observers expect West Virginia will soon follow suite, along with other states that have put legalised sports betting on their books.
“MGM Resorts is proud to once again assume the leadership position in the hospitality industry,” said Jim Murren, chairman and chief executive officer of MGM Resorts International. “Sports wagering is a rapidly growing, exciting new entertainment opportunity for our company. We were proud to take the first sports wager in Atlantic City in June and today the first legal sports wager in two locations in Mississippi.”
As a part of the MGM Resorts International portfolio, Beau Rivage and Gold Strike launch sports wagering operations with the strong support of MGM’s more than 25 years of sports wagering operations experience in Nevada, where the company’s resorts combine to write more than 4 million sports wagers each year with an annual handle of more than $1 billion.
“This is a banner day for Beau Rivage and all of Mississippi and we are proud to lead the way on the Mississippi Gulf Coast,” said Bill Boasberg, president & chief operating officer of Beau Rivage Resort & Casino. “Here in the heart of the South, home to some of the most ardent sports fans in the world, we open a whole new era of sports entertainment and we do it on the eve of football season. What could be better?”
At the stroke of noon, bets by sports celebrities and politicians were officially entered and ticketed and the Mississippi gaming industry entered a new era of sports entertainment.
David Tsai, president and chief operating officer of Gold Strike Casino Resort, heralded the arrival of sports betting with his customers and employees in Tunica.
“This is a defining moment in Gold Strike’s nearly 24-year history,” said Tsai. “Sports fans have long waited for this day and we are proud to be the first to offer our customers this exciting new opportunity to engage with their favorite sports and teams. We are honored to be a part of Mississippi gaming history.”
Beau Rivage and Gold Strike Sports Books are operating out of provisional sports betting windows due to the rapid arrival of legal sports wagering in Mississippi. Details and timelines of the enhancements will be announced at a future date.