Online gambling operator GVC Holdings and hospitality and casino giant MGM Resorts International have entered the last stages of talks within the invention of a combined US sports betting business, sources knowledgeable about the issue told Sky News.
It is believed that the joint venture could finally lead up into a full-scale merger that could set a global land-based and internet gambling powerhouse worth more than $26 billion.
GVC confirmed on Saturday they were in advanced talks over a potential joint venture with MGM and they would upgrade the market when appropriate. Sources told Sky News the deal is very likely to be finalized over the weekend and also an upgrade could come as early as Monday.
GVC and MGM have been working together since the legalization of online gambling in the state of New Jersey at 2013, where the Isle of Man-based company has been operating a gaming website with all the Borgata Hotel Casino & Spa.
The two companies’ new joint venture will encompass an internet sports betting business in addition to the provision of other online gambling services across the United States. It could be structured as a 50-50 performance to which each of those two firms would pledge an initial $100-million investment.
The venture seeks to capitalize on the current annulment of a long-standing federal ban on sports betting in the United States. The US Supreme Court lifted the ban in May to make this up to individual nations to decide whether they want to legalize gaming activities.
New Jersey, that pushed for the ban’s overturning, was the first to leap on the sports betting bandwagon, legalizing the action days after the SCOTUS ruling.
Expansion Plans
According to sources, the GVC/MGM joint venture will initially be established in Nevada and will gradually expand across the nation. It would include a 25-year commitment in the involved businesses with an option for every one of them to get the other after ten years into their partnership.
GVC’s market capitalization now stands pound;6.29 million (approximately $8.2 billion) once it completed earlier this season its blend with British bookmaker Ladbrokes. MGM has an estimated value of $17.27 billion. A merger between these two could lead to a massive gambling business with global presence across all stations .
It is believed that the joint venture provides sports betting beneath the MGM brand in addition to other online gambling services under a few of GVC’s flagship manufacturers, including partypoker and Sportingbet.
The statement about MGM and GVC joining forces to get into the nascent US gaming marketplace comes amid a flurry of important European bookmakers setting foot in the United States for the same function. Paddy Power Betfair has lately declared the acquisition of US dream sports operator FanDuel, while William Hill, that has worked sports publications across Nevada for quite some time and opened up a sports publication with the recently established Ocean Resort Casino at New Jersey, is in talks to find a local partner for further expansion across the US.
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