Gaming and hospitality giant MGM Resorts International announced today that it would look to capitalize on the nascent US sports betting market and extend its US presence with a duo of key partnership deals.
In separate press releases from minutes ago, the major gambling company announced that it has formed a joint venture with Isle of Man-headquartered online gambling operator GVC Holdings and with its fellow US gaming and hospitality operator Boyd Gaming to position itself more strongly in its domestic market at a time when multiple states are taking advantage of the recent annulment of the long-standing federal ban on sports betting.
Under the newly penned partnership agreement between MGM and GVC, the two companies will form a joint venture that will operate sports betting and online gambling services across states where the provision of these services is legal. The two gambling operators will each invest $100 million into their 50/50 joint business. MGM said in today’s statement that the venture will increase its and its partner’s speed to market in “an efficient and prudent manner, lowers execution risk, and creates meaningful early mover advantages.”
The joint business will have access across all legal online and land-based gambling sectors across the United States, including sports betting, online real money and free-to-play casino gaming, and land-based poker tournaments and online poker. MGM revealed that playMGM and partypoker will be their headline online brands.
Reports about the partnership between MGM and GVC emerged over the weekend to be confirmed earlier today. This is not the first time the two companies are joining forces. GVC has actually been operating the online casino of the Borgata Casino in Atlantic City since online gambling was legalized in New Jersey five years ago.
The joint venture is anticipated to commence operations ahead of the upcoming professional football season. The launch of the new business is subject to regulatory approvals.
MGM Partners Boyd Gaming
MGM has struck another key partnership to cement its position in its domestic market. The gaming giant and its fellow operator Boyd Gaming have once again joined forces and this time they will offer online and mobile gaming and betting platforms across states where any of the two companies has physical presence and where licenses for these activities are available.
Both MGM and Boyd Gaming will thus expand their presence across 15 states and will have access to approximately 90 million potential customers.
MGM also announced that its joint venture with GVC will, too, benefit from the newly formed partnership with Boyd Gaming, as it will receive extended market access.
MGM and Boyd Gaming previously operated jointly the Borgata, until the latter company sold its 50% stake in Atlantic City’s highest grossing casino to its partner in 2016 for the approximate amount of $900 million.
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