The US sports betting and online gaming company, ROAR Digital LLC, also known BetMGM, announced Wednesday that shareholders MGM Resorts International and GVC holdings committed to a second round of investment of $250 million for BetMGM to increase its presence in the US.
Initial investments were $200 million, bringing the total to $450 million, and providing BetMGM with over $370 million of investable capital.
"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,” CEO of ROAR Digital, LLC Adam Greenblatt said in a release. “With the return of sports and our growing operations across the US, we anticipate rapid growth in the coming year."
BetMGM is currently active in seven states and is on track to operate in 11 by the end of this year. BetMGM also has access to GVC holdings technology and access to MGM Resorts’ customers and brick and mortar sportsbooks across the nation.
"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,” said Bill Hornbuckle, Acting CEO & President of MGM Resorts.
According to Morgan Stanley’s research as of June 2020, the US sports betting market is projected to gain revenues of close to $8.5 billion by 2025, and revenues of the US iGaming market is expected to reach almost $6.9 billion by the same year.
BetMGM is hoping their access to GVC Holdings technology will give them a competitive advantage in these booming markets.
"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,” CEO of GVC Kenny Alexander said in a statement. “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."
