Shareholders in ROAR Digital, LLC, the joint MGM-GVC venture operating as BetMGM, has confirmed its shareholders have committed to invest another $250 million USD, in addition to the initial $200 million, bringing the total committed thus far to $450 million. This should provide ROAR Digital with more than $370 million of investable capital.
Launched in 2018, ROAR Digital should be operating in eleven US states by the end of 2020.
Discussing the news CEO of ROAR Digital, LLC, Adam Greenblatt, said:
“We launched this business to combine the best of MGM Resorts and GVC, and establish BetMGM as a leading brand in the US sports betting and iGaming markets.
“With broad market access secured, our long-term technology foundations now firmly established, and a high performing team in place, this further unequivocal support from our two shareholders will ensure we can achieve leading market positions in this exciting industry that is growing even faster than our initial expectations.
“BetMGM is on track to generate over $130 million of net revenues this year predominantly from iGaming in New Jersey given the impact of COVID-19. With the return of sports and our growing operations across the US, we anticipate rapid growth in the coming year.”
While Acting CEO & President of MGM Resorts, Bill Hornbuckle, added:
“Our investment in ROAR is a demonstration of our continued excitement about the unique benefit of offering unforgettable, premier entertainment experiences to millions of our loyal guests directly through BetMGM. We believe this competitive advantage places BetMGM at the forefront of the most dynamic growth opportunity in all of US gaming and will ultimately deliver meaningful long-term value for our shareholders.”
And, CEO of GVC, Kenny Alexander, commented:
“We see enormous potential for the US market and are delighted to have such a strong foothold in it through our partnership with MGM Resorts.
“Our stake in BetMGM is, by some distance, the most important and exciting investment that GVC has ever made. We are absolutely committed to ensuring that the Company has the funding and technical resources needed to achieve long-term market leadership, whilst delivering significant value for shareholders.”
With the $17.3 billion Eldorado Resorts-Caesars Entertainment mega-merger looking likely to go-ahead, MGM and GVC will have a serious war on their hands as they battle for dominance in the rapidly emerging US online sports betting and gaming markets.
Expect to see some serious capital flung around, plenty of acquisitions, and a lot of drama – with a prize this valuable at stake, no one will be taking prisoners!
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