Since May 14, the deals partnering up casinos, software companies, DFS sites, and sports betting operators seem to be announced every other day.
This latest deal is arguably the biggest of them all though.
According to Sky News, MGM Resorts is teaming up with one of the biggest European sports betting operations, Ladbrokes. GVC Holdings is Ladbrokes’ parent company, thanks to a deal that closed earlier this year. Shortly after news broke, GVC confirmed the story by issuing the following statement:
“The Group can confirm that discussions are at an advanced stage regarding such a joint venture and will update the market when appropriate.”
The joint venture in the two groups is said to be a $200 million project. The Sky report says the deal is likely a 50-50 venture, with each group putting up $100 million.
How strong are MGM’s sports betting prospects?
In addition to its 13 properties in Las Vegas, MGM has a presence in four other states, with two more on the way. Each state is in the process of legalizing or launching sports betting. Here is a look at each state and MGM’s holdings:
| State | Sports betting status | Properties |
|---|---|---|
| Michigan | Legislative effort still alive in 2018 | MGM Grand Detroit |
| Maryland | Early discussion, expect legislation in 2019 | MGM National Harbor |
| Mississippi | Legalized and launching soon | Beau Rivage and Gold Strike |
| New Jersey | Launched on June 14 | Borgata |
| New York | Major legislative push expected in 2019 | Recently purchased Empire City Casino |
| Massachusetts | Bill expected in 2019 | MGM Springfield opening on Aug. 24 |
The two companies have not revealed details of the finalized deal yet, but there will likely be a formal announcement next week.
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What MGM and Ladbrokes bring to the table
MGM is the largest casino company in the world. Leveraging the MGM brand and the company’s portfolio of properties should position the venture to be one of the top players in the industry.
Ladbrokes brings its sports betting expertise as well as platforms for mobile and brick and mortar betting.
It is worth noting, MGM is already involved in sports betting in both Nevada and New Jersey. In Nevada, the company was a very small player in the mobile betting industry. However, it was first to market along with Monmouth Park when wagering launched in New Jersey last month.
The Borgata sportsbook brought in almost $1 million in its first two weeks. Monmouth Park fared much better, taking in $2.2 million.
GVC’s rumored deal with Valley Forge Casino
It appears MGM is not the only US company GVC has talked with about sports betting either. While not confirmed, rumors suggest GVC will be part of Valley Forge Casino’s online gambling plans.
The Pennsylvania casino was one of nine companies that applied for a $10 million interactive gaming license. If granted, Valley Forge would be able to offer poker, table games, and slots online.
What could throw a wrench in this potential partnership is Boyd Gaming. The company announced its $280 million acquisition of Valley Forge. That deal is not final yet. It is unclear how Boyd will treat the potential partnership.
It’s worth noting that MGM has a presence in many states, but Pennsylvania is not one of them.
Photo by Barry Barnes / Shutterstock.com
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