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MGM Resorts is partnering with GVC Holdings on a deal to offer sports betting services to its American players both at land-based casinos and via online gambling platforms. The new joint venture is a 50-50 deal that’s already earned the blessings of Wall Street as GVC stock prices soared to record prices on word of the announcement.
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Word of the mega-deal was officially confirmed late yesterday with a statement to the press confirming that both companies were set to invest $100 million a piece in the new operation. The new venture is likely to be up-and-running fairly quickly as gaming companies of all sizes get ready to compete for a piece of the American sports betting market before its busy season (football season) gets underway.
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In a statement reported on by Forbes.com, MGM Resorts International Chairman and CEO Jim Murren was enthusiastic about the deal saying:
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.
His counterpart at GVC, CEO Kenneth Alexander described the deal as:
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.
Alexander was definitely right, about the benefits to shareholders anyways. On Monday, shares in GVC Holdings rose by 7.5 percent on word of the deal.
MGM Resorts is partnering with GVC Holdings on a deal to offer sports betting services to its American players both at land-based casinos and via online gambling platforms. The new joint venture is a 50-50 deal that’s already earned the blessings of Wall Street as GVC stock prices soared to record prices on word of the announcement.
Word of the mega-deal was officially confirmed late yesterday with a statement to the press confirming that both companies were set to invest $100 million a piece in the new operation. The new venture is likely to be up-and-running fairly quickly as gaming companies of all sizes get ready to compete for a piece of the American sports betting market before its busy season (football season) gets underway.
In a statement reported on by Forbes.com, MGM Resorts International Chairman and CEO Jim Murren was enthusiastic about the deal saying:
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.
His counterpart at GVC, CEO Kenneth Alexander described the deal as:
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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.
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Alexander was definitely right, about the benefits to shareholders anyways. On Monday, shares in GVC Holdings rose by 7.5 percent on word of the deal.