MGM and GVC increase BetMGM investment to $450m
Shareholders of Roar Digital, the joint venture between MGM Resorts and GVC Holdings, have committed to a second round of investment in the business, bringing its total funding to $450m.
This follows the partners’ initial $200m investment in Roar, with both GVC and MGM splitting ownership 50-50, in July 2018 and provides the business with $370m in investable capital.
GVC chief executive Kenny Alexander described Roar Digital and BetMGM as “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,” he said.
MGM and GVC noted that Roar had grown significantly since its launch, and is on track to be live in 11 states by the end of 2020, under the flagship BetMGM and PartyPoker brands. It has market access agreements in place for 19 states, covering as much as 50% of the US population.
“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,” Roar Digital chief executive Adam Greenblatt said.
“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.”