GVC Holdings PLC (LON:GVC) confirmed on Monday that it has entered into a joint venture with Las Vegas casino operator MGM Resorts International (NYSE:MGM) to set up a sports and online gaming platform in the US.
The UK gambling company, which owns the Ladbrokes, Coral and Sportsbet brands, and MGM are taking advantage of the opportunities created by the US Supreme Court decision to overturn a federal law that bars gambling on football, baseball, basketball and other sports in most states.
GVC and MGM have agreed to inject US$100mln each as part of the 50/50 joint venture, which is expected to be formed ahead of the professional American football season.
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Kenneth Alexander, chief executive of GVC, said: “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. This combined with GVC's technology and experience in successfully building online gaming businesses across multiple markets presents a truly exciting opportunity for US players and our respective shareholders.”
The deal is subject to gaming regulatory approvals.
The announcement follows weekend media reports about a possible collaboration between GVC and MGM, best known for Las Vegas Casinos such as the MGM Grand and Bellagio.
In May, the Supreme Court ruled 6-3 to strike down the 1992 Professional and Amateur Sports Protection Act, which barred state-authorised sports gambling, with some exceptions.
In early afternoon trading in London, GVC's shares topped the FTSE 100 leaderboard, up 4.8% to 1,147p.
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