Two of the world’s biggest gambling giants, GVC Holdings and MGM Resorts, have confirmed that they are in advanced talks to form a joint venture. Their intentions are to create a business that will operate in the new US sports betting landscape. The deal will provide both companies with a significant presence in the multi-billion dollar sector that is set to grow even further, following a landmark ruling by the US Supreme Court.
GVC Holdings, owner of iconic gambling groups such as Ladbrokes and Coral, is listed on the Financial Times Stock Exchange, while MGM Resorts is best know for being owner of a number of major casinos such as the Bellagio and the MGM Grand in Las Vegas. All in all, MGM owns 13 properties in Vegas, and has a presence in several other states. It owns the MGM Grand Detroit in Michigan, the MGM National Harbor in Maryland, the Beau Rivage and Gold Strike in Mississippi, the Borgata in New Jersey, the recently purchased Empire City Casino in new York and the MGM Springfield which is scheduled to open in August this year in Massachusetts.
According to The Guardian, it has been reported that both parties will contribute $100 million to the 50/50 project, with the sole focus being on the development of a US sports betting platform. The venture will require a 25 year commitment, and after 10 years, each company will have the option to buy the other out. The newspaper further reports that the venture will involve GVC becoming the leading sports betting and online casino services provider for all of the properties and casinos owned by MGM in the United States.
According to a number of sources, the deal is to be finalized sometime this weekend, and the industry is expecting an official update on Monday.
A brief statement was made on Sunday by GVC where the company said: “The Group can confirm that discussions are at an advanced stage regarding such a joint venture and will update the market when appropriate.”
This is not a first date for MGM and GVC, as the companies have been partners in the New Jersey online gambling market since the legalization and regulation of the industry in the Garden State in 2013. GVC Holdings operates an online gambling site for the Borgata Hotel and Spa in New Jersey.
