As anticipated FTSE-listed GVC Holdings has this morning confirmed the establishment of its 50-50 US joint venture with MGM Resorts International (MGM).
Updating the market, GVC governance states that the joint-venture will significantly expand its US position granting direct access to regulated US states, with both venture parties securing ‘meaningful early mover advantages.’
“With a proven track record as partners-of-choice, MGM Resorts and GVC will bring together market-leading assets, distinguished brands, proven and scalable proprietary technology, and extensive industry expertise to revolutionise the world of sports betting and online gaming in the United States” details GVC in its corporate update.
Outlining joint-venture terms, GVC will act as lead MGM supplier for interactive services including; land-based and digital sports betting provisions, real money and free-to-play casino solutions, online poker, plus any future digital games inventory.
Furthermore, securing the venture, GVC will integrate its ‘loyalty rewards’ program within MGM properties, optimising customer engagement and the value proposition for new and existing customers.
Kenneth Alexander, Chief Executive of GVC, said: “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. This combined with GVC’s technology and experience in successfully building online gaming businesses across multiple markets presents a truly exciting opportunity for U.S. players and our respective shareholders. To be able to team up with a partner with such pedigree and knowledge, particularly in the U.S., is a real opportunity for GVC.”
As previously reported, both parties have agreed to commit an initial $100 million each in capitalising the joint-venture, which will operate from a new location ‘within a major US technology hub’.
Moving forward GVC and MGM will establish a JV leadership team, which will be overseen by a four-person board of directors with equal representation from both companies.
In its update, GVC has highlighted six core benefits guiding the FTSE enterprise joint-venture and its expansion within the US.
Backing GVC Holdings as US partners, Jim Murren, Chairman and Chief Executive Officer of MGM Resorts, said: “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 U.S.. With MGM Resorts’ expertise and leading position in key markets across the U.S., 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 U.S.. Together, we are creating a one-of-a-kind platform that we expect will dominate the U.S. sports betting market.