The sports betting market has seen some major developments this week. In addition to MGM and GVC entering into a $200 million joint venture, NBA has entered into the mix by naming MGM as its official gaming partner.
Bringing International Operators into the US Market
To start out the week, MGM and GVC (operator of leading UK betting brands, Ladbrokes and Coral) announced that they would each be contributing $100 million to a joint venture. Together, the two companies aim to develop innovative sports betting products for players across the United States.
Currently, sports betting licenses are only available to casino operators that are located within the United States. The market is not open to international operators, but MGM has welcomed the first UK betting operator into the country. They will be working together to develop a sports betting platform that will be available to players in states where sports betting becomes legal. Reports state that here is a 25-year commitment as part of the deal. After ten years of working together, MGM and GVC will have the option of buying the other one.
Sports betting will be brand new to American gaming operators, so they will certainly need help from companies that have experience in the market. This is why it is important for local brands to team up with international companies, as they will be able to offer insight about creating successful sports betting platforms that will attract American players.
NBA Enters the Game
Days later, the NBA announced that MGM would be its official gaming partner. This is a huge deal for the sports betting market, as the NBA has never worked with a gaming operator before and MGM has never partnered with a major sports league. Together, they will generate increasing interest in sports betting across the country.
MGM will feature NBA branding on its land-based and online sports betting products. For example, odds boards at MGM casinos will feature logos from NBA teams as well as the league itself. Another important part of the partnership will see the two companies working together to protect the integrity of sports. They will develop data sharing systems that will allow them to ensure that players are able to stay safe while engaging in sports betting activities.
This is a very exciting time for gaming in America. The online sports betting market is developing very quickly with many states jumping on board the trend. Nevada, Mississippi, Delware and New Jersey have already legalized the activity New York, Rhode Island, Pennsylvania and West Virginia have recently passed sports betting bills. With brands like MGM and the NBA promoting the activity, we are sure that many more states will be seriously considering the option of legalizing sports betting.