Online gaming company GVC Holdings PLC and casino operator MGM Resorts International have formed a 50-50 joint venture to create a new sports betting and online gaming platform in the U.S.
According to a July 30 announcement, the joint venture will provide access to all U.S. land-based and online sports betting, online real money and free-to-play casino gaming, major tournament and online poker, and other similar interactive businesses. It will also integrate the loyalty programs of both gaming companies.
GVC and MGM Resorts said they both agreed to capitalize the venture with initial commitments of $100 million each.
"To be able to team up with a partner with such pedigree and knowledge, particularly in the U.S., is a real opportunity for GVC," Keith Alexander, CEO of the U.K.-based gaming company, said in a statement.
The companies will establish a separate headquarters for the new business, which they plan to set up in a major U.S. technology hub. The leadership team will be composed of professionals from each company and additional new hires.
There will also be a four-person board of directors with equal representation from MGM Resorts and GVC to oversee the venture's ongoing operations and growth.
The news comes two days after Sky News reported that GVC is set to unveil a $200 million joint venture with MGM Resorts. GVC later confirmed the talks in a statement.