Inside Gaming: MGM to Expand Sports Betting, Partners With GVC, NBA
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This week MGM Resorts International dominated industry news after striking multiple deals related to sports betting, including ones with GVC Holdings and the National Basketball Association. Meanwhile Mississippi this week became the latest state to begin offering legalized sports betting.
MGM Strikes Deals with GVC Holdings and Boyd Gaming
MGM Resorts International's logo features the famous image of Leo the Lion, and this week the company assumed the lion's share of industry-related headlines thanks to multiple stories of new deals struck by the company designed to help expand its sports betting operations.
The first came Monday morning via reports that after weekend negotiations MGM had entered a joint venture with the European gambling and online gambling operator GVC Holdings to establish a sports betting and online gaming platform in the United States. Forbes reports how MGM and GVC have each agreed to invest $100 million in order to provide capital for the venture which will be headquartered in the U.S.
The agreement builds upon the two companies' prior partnership announced last year to launch online casino casino and poker games in New Jersey under the playMGM brand. Meanwhile in March of this year GVC Holdings acquired online gaming giant Ladbrokes Coral Group PLC.
Both companies issued enthusiastic statements regarding this week's agreement.
"With MGM Resorts' expertise and leading position in key markets across the U.S., this historic partnership will be positioned to become the instant leader in technology, market access, sports relationships and brands," said MGM Chairman and CEO Jim Murren.
"MGM Resorts is a world leading entertainment business and the most trusted name in gaming, with the highest quality brands and management, and strong sports connectivity," added GVC Holdings CEO Kenneth Alexander.
On Monday MGM and Boyd Gaming also announced an agreement regarding market access, Forbes relates. According to that agreement, "the companies plan to offer sports betting, poker and other casino gaming platforms in jurisdictions where either Boyd Gaming or MGM Resorts operate physical casino resorts and online licenses are available."
Shares of GVC's stock immediately rose 7.5 percent to a record high on Monday before slipping back slightly, reports Reuters.
"GVC appears to have struck gold by signing a 50/50 [joint venture] with arguably the biggest gambling brand in the U.S.," commented Greg Johnson, a London broker.
More MGM News, NBA Becomes First Sports League to Partner with Sportsbook Operator
MGM Resorts International was back in the news again on Tuesday, again regarding another big partnership related to the company's sports betting plans.
ESPN reports that NBA Commissioner Adam Silver announced the league had made a deal through which MGM Resorts will be the exclusive gaming partner of the NBA and WNBA.
The NBA becomes the first major U.S. professional sports league to partner with a sportsbook operator since the U.S. Supreme Court ruled in May that the federal prohibition against individual states offering sports betting was unconstitutional.
The deal gives MGM "rights to use league highlights, logos and a direct data feed from the NBA that will be used to help fuel the company's growing sports betting footprint."
"Those operators who create the best experience for consumers that have official data, that have the official imprimatur of our league and other leagues as well, are going to be those that win in the hearts and minds of consumers," said Silver in a press conference following the announcement.
In that press conference, Silver did mention the so-called "integrity fees" being sought by the NBA based on handles, about which he explained the league was still having discussions with individual states.
Currently no states offering sports betting have provisions in their sports betting laws for integrity fees. A law being considered in New York does have such a provision, but has yet to come to a vote.
MGM CEO Jim Murren was there as well, adding comments regarding the agreement that his company's "foremost mission is to maintain and preserve the integrity of the game, the fan experience for the NBA fans, [and] in fact help catapult further the global presence of the NBA."
While specifics regarding the deal were not shared, ESPN says "Industry sources pegged the deal to be for three years and at least $25 million."
Mississippi Accepts First Sports Wagers
Finally — and sticking with the sports betting theme — on Wednesday Mississippi became the latest state to begin allowing sports betting, with the first bets placed at the Gold Strike Casino in Tunica and Beau Rivage Resort and Casino in Biloxi.
ESPN notes how Murren was on the scene there, too, as MGM owns both properties, sharing enthusiasm regarding the company being able to take the state's first sports wagers. "Sports wagering is a rapidly growing, exciting new entertainment opportunity for our company," said Murren.
Caesars Entertainment announced it plans to open sportsbooks at its casinos in Mississippi prior to the start of football season.
One new twist regarding Mississippi joining the sports betting game is the fact that unlike both New Jersey and Delaware which prohibit bets on games involving in-state colleges, Mississippi (like Nevada) will allow such wagers. That means sports bettors will be able to wager on college football games involving Ole Miss and Mississippi State.
Photo: "Beau Rivage" (adapted), Jimmy_Joe, CC BY 2.0.
