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MGM Resorts International And GVC Holdings Commit To Second Round Of Investment In US Sports Betting And Online Gaming Platform BetMGM

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ROAR Digital, LLC – the US sports betting and online gaming company operating as BetMGM and owned jointly by MGM Resorts International and GVC Holdings – announced that its shareholders have committed to a second round of investment, bringing the total to $450 million. This increase follows MGM Resorts’ and GVC’s total initial commitment of $200 million and underpins their commitment to BetMGM becoming a leading player in the rapidly growing US sports betting and iGaming markets. These two rounds of investment provide the Company with over $370 million of investable capital at present.

Since its launch in 2018, the Company has made significant progress and is on track to operate in 11 states by the end of 2020. In addition to the financial strength of both its shareholders, the Company benefits from MGM Resorts’ leading brand, iconic physical properties, and loyal customer base, along with GVC’s proprietary, globally-proven technology.

“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,” said Adam Greenblatt, CEO of ROAR Digital, LLC. “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.”

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Greenblatt concluded, “BetMGM is on track to generate over $130 million of net revenues this year predominantly from iGaming in New Jersey given the impact of COVID-19. With the return of sports and our growing operations across the US, we anticipate rapid growth in the coming year.”

The Company’s success will be built on its four core strategic tenets, each of which provide distinct competitive advantages:

1.  Market access:

The Company has already secured market access to 19 states1 which together reach approximately 50% of the US population. It has active operations in seven states with four more expected to launch by year end 2020.

With a best-in-class web, mobile, and desktop sportsbook platform as well as supporting MGM Resorts’ brick and mortar sportsbook destinations, BetMGM’s exclusive betting engine allows sports fans to place bets quickly, safely and easily in every channel. This superior experience, together with the Company’s demonstrated strength in player onboarding and management as well as GVC’s global sportsbook expertise, places BetMGM in a very strong position to achieve a leading share in the US sports betting market, estimated to achieve revenues of approximately $8.5 billion2 by 2025.

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In iGaming, the Company has already achieved a leading market position in New Jersey with approximately 18% market share3 and gross gaming revenue growth of 210% in the second quarter of 2020 compared to the prior year quarter. The US iGaming market is estimated to achieve revenues of approximately $6.9 billion2 by 2025, and the Company believes that it can replicate this leading market position in other jurisdictions, as additional states legalize iGaming in the future.

2.  Customer reach:

The Company is uniquely positioned to access a wide range of customers through its partners, affiliates and its omni-channel approach.

MGM Resorts has an established portfolio of market-leading properties across the US, giving BetMGM access to market to millions of engaged and brand loyal customers. M life Rewards, MGM Resorts’ loyalty program, has over 34 million members, of which approximately 18% are located in states planned to be live on the BetMGM platform by the end of 2020.

The Company is integrating M life Rewards in support of an omni-channel strategy such that BetMGM customers will become M life Members to earn and enjoy Tier status, recognition and rewards based on their sports and iGaming wagers. Likewise, existing M life Rewards members will now have a new way to earn Tier Credits and status based on sports and iGaming wagers placed with BetMGM. This integration is expected to drive new customer acquisition, omni-channel activity, as well as ongoing customer loyalty and engagement for BetMGM.

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In addition, the Company has exclusive partnerships with Yahoo Sports and Buffalo Wild Wings. Upon the imminent return of sports, the Company is looking forward to launching BetMGM to Yahoo’s 64 million monthly active users, including one of the largest fantasy sports player bases in the US.

3.  Product and technology:

BetMGM has exclusive access to GVC’s proven, highly flexible, and highly scalable in-house technology platform, which gives it world-class infrastructure, tools and content in both iGaming and sports betting.

Access to proprietary and vertically integrated technology is a key strategic advantage in delivering a leading sports and gaming proposition to customers. Core benefits include speed of development, reducing time to market on innovative new features, platform stability and flexibility, and ease of use.  The technology platform has been fully optimized ahead of the return of US sports, with the Company enjoying support from a team of over 2,000 IT specialists, including a dedicated team servicing the BetMGM product.

The Company also benefits from the maturity and rich features of GVC’s sports product, including an immersive in-play betting experience across an exhaustive range of sports as well as a range of industry leading bet management features such as Bet Rewards, Odds Boosts, Build-A-Bet, Edit-My-Bet and Auto Cash Out features. Combined with state-of-the-art engagement capabilities, best-in-class frictionless customer experience, as well as powerful omni-channel journeys and cross sell capabilities this gives BetMGM significant technological and experiential advantages. Internally developed, exclusive iGaming content has been key to BetMGM’s success in New Jersey. The current strength of product and technology, combined with the pace of improvement and innovation, strongly supports the Company’s leadership ambitions.

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4.  People: 

In addition to being able to draw on the outstanding talent within both MGM Resorts and GVC, the Company has built an industry-leading team across a range of functions, including marketing, technology, product development, and customer engagement and retention.

The team has been hand-picked and combines deep industry experience from around the globe with US specialists in areas where local expertise is vital such as VIP, product UI/UX and customer research.

The US-based trading leadership team has a track-record of building trading operations and winning market share from incumbent players in the sports betting market. The approach and techniques further support the Company’s growth agenda.

“Sports betting and iGaming are fundamental to what MGM Resorts does best,” said Bill Hornbuckle, Acting CEO & President of MGM Resorts. “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.”

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“These are exciting times for BetMGM, as it continues to expand its iGaming business while also offering customers an outstanding sports betting experience as live sports returns to the US,” said Kenny Alexander, CEO of GVC. “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.”

 

SOURCE MGM Resorts International

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Atlantic City casinos

New Jersey Gambling Revenue Increases in July

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This summer is shaping up to be a strong one for Atlantic City casinos and their online gambling operating partners. According to the latest data collected by the state, the total gambling revenue for the casinos and their operating partners from in-state online gambling was nearly $250 million during July. That represents a nearly 27% increase over last year’s total revenue for July, and it comes on top of a more than 23% year-over-year increase measured during the month of June.

In all, revenue this year from online gambling through the end of July topped $1.6 billion, up 23.3% compared to the same period last year, according to a report from the state’s Division of Gaming Enforcement, which regularly tracks gambling revenue earned legally in New Jersey.

The revenue gains from online gambling do not appear to have come at the expense of in-person gambling this summer, according to the DGE data. Revenue from gambling at the casinos also grew in both June and July, although at more modest rates, with year-to-date collections totaling $1.66 billion through the end of July, the report said.

Amid the online-gambling revenue upswing, state policymakers decided earlier this summer to increase the state tax levied on legal online gambling offered by casinos and their operating partners.

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The online gambling tax hike, as well as an increase in the state tax levied on mobile sports betting, came as part of a broader plan to raise an additional $600 million in annual revenue for the state budget.

The two gambling tax hikes, which went into effect on July 1, are projected to increase the revenues the state collects from casino taxes and fees by more than $200 million annually, according to estimates from the Department of the Treasury.

According to the report issued by Stockton University, which is based in Atlantic County, the casino industry’s gross gambling revenues totaled nearly $5.7 billion in 2024.

Last year, the total from taxes and fees levied on casino operators in New Jersey topped $880 million, according to a report issued earlier this year by Stockton University.

This included $572 million in revenue that went directly into New Jersey’s Casino Revenue Fund, the report said. That fund, by law, benefits programs and services for senior citizens and disabled residents.

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In all, online gambling on traditional casino games, like poker and blackjack, netted casino operators $2.4 billion in gross revenue last year, followed by slots, $2.1 billion; table games, $699.7 million; mobile sports betting, $486.5 million; and in-person sports betting, $6.5 million, according to the report, which cited state data.

And even before the increased state tax rates that were put in place earlier this summer, the tax revenue generated by casino gambling in New Jersey was trending up, the report said.

The post New Jersey Gambling Revenue Increases in July appeared first on Gaming and Gambling Industry in the Americas.

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Gambling in the USA

Virginia Lawmakers Debate Creating iGaming Agency

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Virginia lawmakers are actively debating whether to establish a new regulatory agency to oversee iGaming. The joint subcommittee discussed a bill to create the Virginia Gaming Commission. It would manage all gambling verticals beyond the lottery.

Delegate Paul Krizek said: “The Virginia Gaming Commission is a step we need to preserve the good.”

Currently, the Virginia Lottery regulates sports betting and casinos, while other agencies manage charitable gaming and horse racing. Lawmakers also considered legalizing online casinos, including real-money platforms.

Delegate Marcus Simon introduced HB 2171 earlier this year. The bill aimed to authorize a real money online casino market under casino-lottery oversight. While the bill failed, Simon explained that the aim remains to curb illegal offshore platforms.

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“My goal is to bring it under a regulated umbrella where we can have some oversight and supervision,” Simon said.

The subcommittee reviewed revenue projections estimating up to $5.3 billion in taxable income from online casinos over five years. The estimates included increased land-based casino revenue of 8.4%.

Experts raised concerns about real money online casino risks. Keith Whyte from Safer Gambling Strategies urged strong enforcement and safer gaming tools. Whyte noted: “Players could be encouraged… to take control through deposit limits, time limits, budget calculators, and personalized dashboards.”

Mental health advisor Brianne Doura-Schawohl backed up Whyte’s statement, warning that such products are dangerous without safeguards.

Former New Jersey regulator David Rebuck testified that iGaming complemented land-based casinos there. He pointed to New Jersey’s market, where online play boosted tourism and in-person casino revenue.

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However, some Virginia legislators expressed skepticism, citing fears of cannibalization. They questioned whether online casinos might draw customers away from brick-and-mortar venues.

Industry experts countered that New Jersey and Michigan showed the opposite effect. Rebuck explained: “The evidence demonstrates iGaming expands the player base rather than cannibalizes physical casinos.”

Supporters argued that Virginia’s land-based operators could benefit from cross-promotion, loyalty programs, and expanded reach to players in rural areas.

The subcommittee must make recommendations by November 30, 2025. Officials expect the commission’s creation will precede legalization of online casinos. The Virginia lawmakers will review feasibility and revise HB 2171 before the 2026 legislative session.

The post Virginia Lawmakers Debate Creating iGaming Agency appeared first on Gaming and Gambling Industry in the Americas.

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DraftKings Introduces Credit Card Deposit Ban for US Customers

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DraftKings has introduced credit card deposit ban for US customers. This decision aligns them with other major gambling operators, such as Fanatics Betting & Gaming, Betr, and Sporttrade, which have already banned credit card funding for wagering accounts.

It also comes on the heels of another major announcement by DraftKings. Starting September 1, DraftKings will charge a 50-cent fee for every mobile and online bet placed in Illinois using its Sportsbook platform. This change follows a similar move by FanDuel.

DraftKings CEO, Jason Robins, expressed his disappointment with Illinois policymakers for significantly raising the tax rate. He is worried that this could hurt the legal sports betting industry, while the illegal market continues to operate without paying taxes or providing any consumer protections.

DraftKings has informed its users that any saved credit card information will be disabled.

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Moving forward, players will need to utilize alternative payment methods, including:

• Debit Cards

• ACH and wire transfers

• PayPal, Venmo

• Apple Pay

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• Gift Cards

Bettors can also use cash at physical locations to fund their accounts.

DraftKings describes this step as a “strategic business decision” aimed at shielding customers from the high interest rates and cash advance fees usually associated with credit card deposits in gambling. Unlike regulatory demands, this decision was internally driven but coincides with growing scrutiny from regulators.

DraftKings has decided to stop accepting credit cards for deposits in the US due to worries about customer safety and more scrutiny from regulators. Recently, the company faced a significant fine in Massachusetts, where it is based. The Massachusetts Gaming Commission fined DraftKings $450,000 for allowing credit card deposits, which goes against state laws.

The post DraftKings Introduces Credit Card Deposit Ban for US Customers appeared first on Gaming and Gambling Industry in the Americas.

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