A new funding round in joint venture property ROAR Digital has been approved by shareholders of GVC Holdings and MGM Resorts, raising US business venture investment to $450 million.
The financing is agreed to accelerate BetMGM ‘s flagship sportsbook property of ROAR, which is on track to operate in 11 US states by year end trading following its launch in 2018.
ROAR ‘s second tranche of financing follows an initial joint venture pledge of $200 million, initiated by GVC and MGM investors in early 2019 as BetMGM began its US business proceedings.
GVC and MGM note that the investment ‘underpins their commitment’ to ensuring that BetMGM is the leading sportsbook and igaming business for the controlled US market, where ROAR will retain ‘$370 million of investment capital’ for its expansion directives.
Adam Greenblatt, CEO of ROAR Digital said: “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.
“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.”
Going forward, ROAR seeks to dominate US wagering in market access, customer reach, technology and people’s ‘four core strategic tenants.’
Citing solid foundations for the first year, ROAR has gained market access to 19 states, around 50 percent of the US population.
Further imminent opportunities will see ROAR open BetMGM to 64 million monthly active users of Yahoo Sports, triggering its exclusive advertising agreement upon the imminent return of the US pro sports calendar.
Bill Hornbuckle, Acting CEO & President of MGM Resorts added: “Sports betting and iGaming are fundamental to what MGM Resorts does best.
“Our investment in ROAR is a demonstration of our continued excitement about the unique benefit of offering unforgettable, premier entertainment experiences to millions of our loyal guests directly through BetMGM. We believe this competitive advantage places BetMGM at the forefront of the most dynamic growth opportunity in all of US gaming and will ultimately deliver meaningful long-term value for our shareholders.”
The expansion of BetMGM continues to be enabled by the creation of proprietary technology units and applications customised to US sports patterns and commitments by GVC.
The technology dedication of the joint venture sees GVC and MGM stress the need for ROAR to hire the best-in – class talent heading the research, product growth, and day-to-day operations of BetMGM.
GVC CEO Kenneth Alexander has said: “We see enormous potential for the US market and are delighted to have such a strong foothold in it through our partnership with MGM Resorts.
“Our stake in BetMGM is, by some distance, 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.”