The online gambling and sports betting company of GVC Holdings and MGM Resorts is significantly increasing its financial bet on achieving US market dominance over the next 5 years.
On Wednesday, US casino operator MGM and UK-listed gambling giant GVC announced that they were investing an additional $250 million into their US-facing Roar Digital online gambling and sports betting joint business as well as its BetMGM business.
This second round of investment builds on the firms’ original $200 million pledge when they announced their pact in 2018.
Roar Digital Chief Executive Adam Greenblatt hailed “this further unequivocal support from our two shareholders” as crucial to achieving the company’s goal of securing “leading market positions” in regulated US gaming and betting states.
With Roar seeking to be operating in 11 states by the end of this year, Greenblatt said the company would generate more than $130 million in net revenue in 2020. The majority of this will come through its operations in New Jersey’s regulated online gambling market, which soared to incredible amounts following the mid-March shutdown of Atlantic City’s traditional casinos.
Roar entered a markting agreement with Yahoo Sports last October and Roar said on Wednesday that it’s “looking forward to launching BetMGM to Yahoo’s 64 million monthly active users”. The release did not specify just how many of those 64 million customers reside in states in which online gambling/betting is allowed and Roar is active, leave alone the amount of action these Yahoos were sending to Roar.
Roar additionally tipped its access to “the maturity and rich features of GVC’s sports product,” which gives BetMGM “significant technological and experiential advantages.” The release did not explain why, in spite of these advantages, BetMGM’s N.J business continues to generate a small fraction of the revenue produced every month by rivals FanDuel and DraftKings.
Regardless, GVC Chief Executive Kenny Alexander struck a typically bellicose tone on the resulting conference call, saying the JV partners were willing to spend “as much as it takes” to grind the likes of DraftKings under BetMGM’s heels. Kenny Alexander said Roar would settle for nothing less than market dominance, cautioning rivals that “the kid gloves are coming off.”
In a perfect world, Alexander’s announcement would have been instantly followed by DrafyKings Chief Executive Jason Robins sneaking up behind the former and hitting him over the head a foldable metal chair, after which the call would shift to a promotion for their next PPV title contest in Vegas. Probably in 2021.