MGM Resorts International on Monday, July 30, announced two new partnerships that, according to CEO Jim Murren, will significantly help the company to rise above many other operators and become an industry leader in U.S. sports betting markets other than Las Vegas.
One of the two strategic partnerships is a market access agreement between MGM and Boyd Gaming which is expected to expand the scope of online and mobile gaming in the country. This partnership will offer sports betting, poker and other casino gaming platforms in the areas where either MGM Resorts International or Boyd Gaming operate a land-based casino or possess online licenses.
“Thanks to our partnership with MGM Resorts, Boyd Gaming will have the opportunity to potentially add an online presence in five additional states, positioning us for significant future growth as our respective companies take a leadership role in our industry’s evolution,” Boyd Gaming President and CEO Keith Smith.
Separately, MGM also announced that it had established a 50-50 joint venture with Europe-based GVC Holdings PLC. The venture will see both companies collaborating to establish a sports betting and online gaming platform that will have its headquarters in the United States. To capitalize on the venture, each of the companies will be raising a whopping $100 million.
GVC has made tremendous efforts to nab a share of the U.S. sports betting market and with the country’s Supreme Court having lifted the federal ban on sports betting, there are a ton of new opportunities in the nascent but rapidly growing market.
The joint venture alone will give the company access to 15 states which have around 90 million people. Added to the fact that the joint venture will also give GVC access to all the land-based gambling facilities and online sports betting platforms in the United States, there is certainly bound to be a revolution in the United States gambling scene.
“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,” Kenneth Alexander, the GVC Holdings. Chief Executive Officer said.
Jim Murren, the Chairman and Chief Executive Officer of MGM Resorts International also commented on the joint venture saying:
“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.”