GVC and MGM Resorts in u.s. talks on sports betting
News on 29 Jul 2018
News on 29 Jul 2018
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 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.
