Isle of Man-based online gambling company, GVC Holdings, has reportedly confirmed it is engaged in talks regarding a merger with global hospitality and entertainment company, MGM Resorts International (MGM:New York).
According to Sky News …
The owner of British-based betting and gambling company, Ladbrokes Coral Group plc, will this week or as soon as Monday, reveal a long-term joint venture with the Las Vegas-based company worth $200 million.
The news agency reports that GVC Holdings worked this weekend toward finalizing details of the tie-up with the operator of destination resorts in Las Vegas, Mississippi, Maryland, New Jersey, Detroit and the $960 million resort casino in Springfield, Massachusetts, due to open on August 24, 2018.
In a statement, GVC Holdings said…
“The Group can confirm that discussions are at an advanced stage regarding such a joint venture and will update the market when appropriate.”
The company which completed its $1.5 billion acquisition of Gibraltar-based rival Bwin.Party Digital Entertainment in August 2017, had reportedly been mulling opportunities in the States following the Supreme Court’s May ruling overturning the federal ban on sports betting.
The deal, which in addition to online sports betting will ultimately encompass other interactive gaming services throughout the U.S., is expected to be an equal partnership, with both companies reportedly making an initial $100 million commitment. The alliance could, however, lead to a full merger, according to the news outlet.
Having determined the purchase would not give rise to competition concerns, in March this year in the United Kingdom, the Competition and Markets Authority approved GVC Holdings’ $5.6 billion purchase of sports betting giant Ladbrokes Coral Group.