Listed gaming operators GVC Holdings and MGM Resorts International have established a joint venture to capitalise on opportunities in the US sports betting and interactive gaming market.
The 50-50 joint venture between London-listed GVC and New York-listed MGM Resorts sees the two companies provide certain assets to the venture under a 25-year agreement, alongside a capital commitment of $100m each.
The JV will serve as the exclusive vehicle for all US land-based sports betting, as well as online betting and gaming (real-money & free-play), online and major tournament poker, and other similar future interactive businesses.
Under the terms of the exclusive partnership, the business will be conducted primarily under the PlayMGM and partpoker brands, led by a board of directors comprised of two members from each company with equal governance and decision making rights.
"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," said GVC chief executive Kenneth Alexander.
"This combined with GVC’s technology and experience in successfully building online gaming businesses across multiple markets presents a truly exciting opportunity for US players and our respective shareholders. To be able to team up with a partner with such pedigree and knowledge, particularly in the US, is a real opportunity for GVC."
The JV will operate from its own headquarters located in a major US technology hub, with its leadership selected from both companies alongside additional new hires.
"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 US," said MGM Resorts chief executive Jim Murren.
"With MGM Resorts’ expertise and leading position in key markets across the US, 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 US," Murren added. "Together, we are creating a one-of-a-kind platform that we expect will dominate the US sports betting market."
Shares in GVC Holdings plc. (LSE:GVC) were trading up 5.39 per cent at 1,154.00 pence per share in London early Monday morning, while shares in MGM Resorts International (NYQ:MGM) closed in New York Friday down 1.60 per cent at $30.72 per share.