Another significant investment
MGM Resorts International and GVC Holdings are committing a further investment of $250m into the BetMGM online sports betting and online casino platform.
The investment is technically in ROAR Digital, which operates as BetMGM. The shareholders announced on July 8 that a second round of investment has been committed, bringing the total invested by the two parties to date to $450m.
there is now more than $370m worth of capital at the company’s disposal
MGM Resorts and GVC initially invested $200m in July 2018 as they looked to become one of the major players in the fast-growing United States iGaming and sports betting markets. As a result of this latest investment, there is now more than $370m worth of capital at the company’s disposal.
BetMGM initially launched in 2018 and it has been steadily growing its reach ever since. By the close of 2020, it expects to be operational in 11 different states. As well as having significant financial backing, BetMGM can leverage the MGM brand, a loyal customer base, and physical properties in addition to the proprietary GVC technology.
BetMGM success to date
Adam Greenblatt, the CEO of ROAR Digital, said of this latest round of investment that the goal upon the initial launch was to combine the best aspects of GVC and MGM to turn BetMGM into one of the biggest brands in the US iGaming and sports betting market.
Looking forward, 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.”
Core strategy going forward
ROAR is focusing on four key areas to try to build a competitive advantage. The first is market access, with BetMGM having deals in place to establish a presence in 19 different states. This will allow it to reach about half of the entire US population. BetMGM is currently live in seven states, with four more states to be added to the list by year’s end.
It is also looking to leverage the customer base of its partners and affiliates. For example, the MGM Resorts loyalty program already has more than 34 million members. Of these members, 18% are living in states where BetMGM will be live by the end of 2020.
The third core pillar of the ROAR strategy going forward is the deployment of GVC’s proprietary technology and expanding the available product range for customers. Finally, the company will continue investing in a quality team to help drive the project forward.