MGM Resorts and GVC double down on BetMGM investment9th July 2020 9:06 am GMT
MGM Resorts International and GVC Holdings have committed to a second round of investment in their Roar Digital joint venture and its BetMGM sports betting and online gaming platform, bringing the total investment to $450m.
The increase follows their initial investment of $200m in July 2018 and underpins their commitment to making BetMGM a leading player in US sports betting and iGaming.
The two rounds of investment provide BetMGM with over $370m of investable capital at present.
“We launched this business to combine the best of MGM Resorts and GVC, and establish BetMGM as a leading brand in the US sports betting and iGaming markets,” said Roar Digital CEO Adam Greenblatt.
“With broad market access secured, our long-term technology foundations now firmly established, and a high performing team in place, this further unequivocal support from our two shareholders will ensure we can achieve leading market positions in this exciting industry that is growing even faster than our initial expectations.”
Since its inception two years ago, BetMGM has launched operations in seven US states, with market access deals in place for a total of 19 states US.
“BetMGM is on track to generate over $130m of net revenues this year predominantly from iGaming in New Jersey given the impact of COVID-19,” continued Greenblatt. “With the return of sports and our growing operations across the US, we anticipate rapid growth in the coming year.”
MGM Resorts acting CEO and president Bill Hornbuckle commented: “Sports betting and iGaming are fundamental to what MGM Resorts does best. Our investment in Roar is a demonstration of our continued excitement about the unique benefit of offering unforgettable, premier entertainment experiences to millions of our loyal guests directly through BetMGM.
“We believe this competitive advantage places BetMGM at the forefront of the most dynamic growth opportunity in all of US gaming and will ultimately deliver meaningful long-term value for our shareholders.”
GVC Holdings chief executive Kenneth Alexander added: “These are exciting times for BetMGM, as it continues to expand its iGaming business while also offering customers an outstanding sports betting experience as live sports returns to the US. We see enormous potential for the US market and are delighted to have such a strong foothold in it through our partnership with MGM Resorts.
“Our stake in BetMGM is, by some distance, the most important and exciting investment that GVC has ever made. We are absolutely committed to ensuring that the company has the funding and technical resources needed to achieve long-term market leadership, whilst delivering significant value for shareholders.”
Shares in GVC Holdings plc (LSE:GVC) were trading up 2.12 per cent at 826.96 pence per share in London Thursday morning, while shares in MGM Resorts International (NSQ:MGM) closed up 0.99 per cent at $16.30 per share in New York Wednesday.