GVC, MGM Sprucing Up Mobile Platform With Huge Investment in BetMGM

The writing for the US legal sports betting scene has been on the wall for a while. Either develop a strong mobile app and platform or risk becoming irrelevant in the rapidly increasing US market. US casino operator MGM and UK-listed gambling giant GVC and their ROAR Digital betting partnership are the latest to concentrate heavily on their online products, announcing Wednesday that they are more than doubling their investment in their online wagering platform to $450 million from $200 million. It is the result of a second funding round and gives the company $370 million in investable cash on hand.

The new round of funding comes as the sporting menu is starting to fill up and major North American sports are about to come back into the fold. Not only will a stronger mobile presence help the partnership grow what has been a respectable market share but it will also help them stay in the elite class of sports betting providers going forward. BetMGM has some work to do however in order to keep up with Heavyweights on the mobile betting side of their top-tier business.

A bit about ROAR

Roar Digital is a partnership between MGM Resorts International and GVC - Great Britain’s betting technology leader. The partnership has been around since 2018 and has been a major player in the US legal sports betting market since its inception. The Company hasn't been shy about expanding its reach - they will be live in 11 states by the end of 2020 and has market access in 19 states which comprise approximately 50% of the nation’s population.

"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."

MGM's strength

A beneficial relationship, MGM Resorts International brings its iconic US branding to the partnership as well as its well-known properties around the US. Their customer base is loyal and they are vast. The company has reported a decent market share in every state they have a presence so far and thanks to MGM Resorts' loyalty program, they boast over 34 million members. Their relationship with Yahoo Sports gives them access to another 64 million monthly users.

BetMGM boasts a best-in-class web, mobile, and desktop sportsbook platform which is only going to improve with the company’s newest commitment to the site. That will come in handy with the increased competition in the US market. It will also help them with an emerging iGaming market that grew 210% in the second quarter, compared to the first and is estimated to be worth $6.9 billion by 2025. According to Adam Greenblatt, CEO of ROAR Digital BetMGM is projected to make over $130 million annual net revenue for 2020 and most of the money will come from iGaming in New Jersey.

GVC's strength

GVC brings with them a best-in-class proprietary technology that is hard to replicate in today's market. BetMGM has been one of the envies of the betting world thanks the GVC technology and their ability to develop cutting-edge software for their platform in-house can't be ignored.

"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."

Moving forward

ROAR is all but ensuring their status as a top sportsbook in the US with their investment in BetMGM. With a US sports betting market estimated to be $8.5 billion by 2025, ROAR is prepping to take their share.

While the US sports betting market is definitely growing, the service providers that are elevating to the elite level are shrinking. With the BetMGM app looking good already and on the verge of improving, MGM International and GVC are near the peak, if they haven’t reached it already.