Shareholders in ROAR Digital, the US sports betting and online gaming company operating as BetMGM and owned jointly by MGM Resorts International and GVC Holdings have committed to a second round of investment in the firm, bringing the total to $450m.
The increase follows MGM Resorts’ and GVC’s total initial commitment of $200m underpinning a commitment to BetMGM becoming a leading player in the rapidly growing US sports betting and igaming markets. The combined rounds of funding provide the company with over $370m of investable capital at present.
“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.
“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.”
He concluded: “BetMGM is on track to generate over $130m 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.”
In a statement to the market, the company said its success will be built on four core strategic tenets, each of which provide distinct competitive advantages. These comprise market access, customer reach, product and technology, and people.
“Sports betting and igaming are fundamental to what MGM Resorts does best,” said Bill Hornbuckle, Acting CEO and 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.”
Kenny Alexander, CEO of GVC, noted: “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.
“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.”