GVC Holdings and MGM Resorts International Set To Sign Joint Venture Ahead Of Possible Merger
It is being reported that the world’s largest casino operator MGM Resorts International is on the verge of signing a joint venture with the UK’s largest bookmaker Ladbrokes Coral who are owned by GVC Holdings.
According to initial reports the deal which should be completed by the end of the weekend will see the two companies sign a joint venture in which both firms will initially commit $100m to the joint venture. The deal will cover both online sports betting as well as other interactive gaming services in the US.
MGM Resorts international is the largest casino operator and is valued at £13.4billion while GVC is valued at £6.29 billion. Many are of the opinion that the joint venture is just the first step towards a full-scale merger that would create a behemoth in the gambling industry.
GVC Holdings are already the largest UK bookmaker following their acquisition of Ladbrokes Coral earlier in March this year and their brands include FoxyBingo, PartyCasino and SportingBet.
The US Sports betting market is potentially worth billions. In the past we have reported on this in depth with many believing it would take years until the market was legalized. In the space of just a few months the sports betting market in the US has erupted in a frenzy following the PASPA Supreme Court decision. The race is on for major sportsbook and gaming players in general to get in on what many dub the” Gold Rush” of gambling at the moment. Some of the key players already in the race include SBTech, DraftKings, FanDuel and Kambi.
As of the time of this article going to publication GVC did confirm that there discussions “ are at an advanced stage.”