Sky News has this morning reported that FTSE-listed gambling group GVC Holdings is set to unveil it’s $/£ multi-million US strategic partnership with MGM Resorts International next week.
According to city insiders, GVC governance is finalising plans on a long-term 50-50 joint venture with MGM Resorts, considered the US’ largest casino operator.
Both parties will commit an initial $100 million (£77 million) investment, in creating the joint venture which will seek to dominate the radically changed US gambling market post PASPA.
The alliance will see GVC act as the lead sports betting and online gambling services provider for MGM Grand, SkyLoft, Mandalay Bay and Bellagio casino properties.
Furthermore, GVC and MGM will work together to create new gambling/betting ventures within newly sanctioned US states, seeking to deliver consumers the best land-based and digital gambling proposition.
In its report, Sky News details that a successful MGM-GVC partnership ‘could pave the way to a $20 billion merger’ as the two enterprises have agreed to buy-out commitments should the joint-venture succeed in dominating the liberalised US betting market.
The MGM agreement will pole-vault GVC’s position within the US market, which to date has been limited to the FTSE enterprise servicing MGM New Jersey resorts ‘PlayMGM’ online casino and poker brands, alongside Ladbrokes’ legacy parlay technology subsidiary ‘Stadium Tech’.
Following the Supreme Court’s repeal of PASPA’s federal mandate last May, city analysts have been eyeing GVC Holdings US movements, amid frenzied activity by its FTSE counterparts, Paddy Power Betfair and William Hill.
City insiders have praised GVC Holdings Chief Executive Kenneth Alexander, stating that a successful MGM joint-venture could prove to be ‘a masterstroke’ for the firm’s future value, as all gambling incumbents look to develop their US identities.