The owner of Ladbrokes and Coral have decided to push ahead with a $200-million deal, allowing the operator to seek a possible partnership with a US casino operator and quickly shift the tide of the burgeoning sports betting legislation in the country. If successful, the partnership should reap rewards beyond anyone’s wildest dreams.
GVC and MGM Meet Half-way
Let’s quickly set the backdrop first. GVC Holdings has been reportedly finalizing a joint-venture with another casino operator, MGM Resorts International. The possible upshot is a global behemoth in the casino sector and definitely a much unpleasant company to compete against.
The move has been possible by the change in the US legislation concerning the iGaming and sports betting sectors. As a result, both companies will be going into the deal with an equal share, coughing up roughly $100 million to get the venture off the ground.
The venue where the future enterprise will come together is not chosen by chance either. Nevada will welcome the new company as it has the most accommodating sports betting laws, with the activity having been legalized as early as the beginning of the 1990s.
MGM Has the Con
As per the new arrangement, MGM will take the lead in managing the services whilst GVC will focus on developing its brands, including PartyPoker and Sportingbet. The goal of the company will be to land more clout to the companies on its portfolio.
MGM will benefit greatly from the possible consolidation, especially when it’s pushing ahead to expand in Japan as well. Not only that, but the entire sector for gambling is now seeking an entry in the recently opened market.
The emergence of mega-gambling companies can send scares across the sector, especially insofar as small companies are concerned. Conversely, by adding assets and portfolio together, big companies can fight more determinedly for legislation they see pivotal to the further advancement of their interests.
Coming Out in Full Force
Coral and Ladbrokes is in the meanwhile running a separate deal with MGM for $200 million. Naturally, neither MGM nor their partners from GVC will be swayed from continuing to develop their own portfolios coming up with reliable and trustworthy solutions all along the way.
GVC has not yet stated its intentions for the transformed Japanese market, but chances are that the company may seek a piece out of this new-found land. The majority of companies have or intend to enter the segment rather determinedly, too.
Meanwhile the new venture between the pair of gambling behemoths will seek to establish better ties with local regulators and state-level lawmakers in a bid to have the necessary transformative power on the industry.
Sports betting is taking off rapidly, but GVC and MGM will want to have a much better understanding, and possible insight in the inner workings of how such laws are made. The company, the name of which has not been disclosed yet, will focus on catering to the future business plans of both companies and making legalized sports betting quite possible sooner than it would normally take off.
