Two Become One
There’s some big news coming from the gambling capital of the world this week, one that sees the owner of Ladbrokes and Coral cashing in on a multi-dollar US sports betting market…
…In May, the supreme court struck down federal law in a ruling of 6 to 3, to allow sports betting in the US to become legalised, so this is why GVC Holdings is finalising the terms and conditions of a long-term venture, in a $200m deal with the world’s largest casino operator: MGM Resorts International, in order to dominate the US sports betting market…
The merger will see the two companies committing an initial $100m dollars each, for a 50/50 operation. The expertise of MGM (with infamous casino venues such as the Bellagio, MGM Grand and The Mirage) will come together perfectly with the technology expertise of GVC in a market-boosting deal.
Big Deal
Federal laws passed in 1992, meant that sports betting across the US was deemed an illegal act: unless you lived in Nevada that is…
…Nevada was the only state not to be hit by the new federal laws, so this is where the talks will get under way. This will see GVC and MGM venture into different states across the US, to offer a partnership.
On Friday 27th July, MGM’s market price was $17.5bn (£13.4bn) whilst GVC stood close to £6.29bn – which is significantly less than the world’s biggest hospitality group. This merger could see a substantial boost in GVC shares, which is good news to shareholders.
Boss It
With MGM being the largest party, they will dominate the betting services, but rumour has it that GVC’s Sportingbet and Partypoker brands will be in the spotlight.
Partypoker was kicked out of the US more than a decade ago but will now get to return, thanks to the federal law ruling in May.
The news of the merger being completed can come as early as next week!
