TIDMGVC
RNS Number : 1214W
GVC Holdings PLC
30 July 2018
FOR IMMEDIATE RELEASE 30 JULY 2018
GVC Holdings PLC
("GVC")
GVC HOLDINGS PLC ANNOUNCES JOINT VENTURE WITH MGM RESORTS
INTERNATIONAL TO CREATE LEADING SPORTS BETTING AND INTERACTIVE
GAMING PLATFORM IN THE U.S.
Combines GVC's Proprietary, Integrated, U.S. Licensed,
Multi-channel Technology with MGM Resorts' Iconic, Market Leading
Brands and National Footprint
Leverages Complementary Assets and Expertise to Efficiently
Maximise Attractive Market Potential
Clear Path to Access in 15 U.S. states with total addressable
population of 90 million
GVC Holdings PLC (LON: GVC) today announces the establishment of
a 50/50 joint venture with MGM Resorts International (NYSE: MGM)
("MGM Resorts") to create a world-class sports betting and online
gaming platform in the United States, well-positioned to engage in
the new opportunities created by the recent U.S. Supreme Court
decision overturning the U.S. federal Professional and Amateur
Sports Protection Act, or PASPA.
With a proven track record as partners-of-choice, MGM Resorts
and GVC will bring together market-leading assets, distinguished
brands, proven and scalable proprietary technology, and extensive
industry expertise to revolutionise the world of sports betting and
online gaming in the United States. The formation of the joint
venture significantly increases speed to market for both parties in
an efficient and prudent manner, lowers execution risk, and creates
meaningful early mover advantages.
Kenneth Alexander, Chief Executive of GVC, said: "MGM Resorts is
a world leading entertainment business and the most trusted name in
gaming, with the highest quality brands and management, and strong
sports connectivity. This combined with GVC's technology and
experience in successfully building online gaming businesses across
multiple markets presents a truly exciting opportunity for U.S.
players and our respective shareholders. To be able to team up with
a partner with such pedigree and knowledge, particularly in the
U.S., is a real opportunity for GVC."
Jim Murren, Chairman and Chief Executive Officer of MGM Resorts,
said: "We are proud to join forces with GVC, the largest and most
dynamic global online betting operator, with existing reputable and
trusted operations in the U.S.. With MGM Resorts' expertise and
leading position in key markets across the U.S., this historic
partnership will be positioned to become the instant leader in
technology, market access, sports relationships and brands. We are
excited to benefit from GVC's proprietary, best-in-class
technology, digital customer acquisition expertise, and experience
with adapting to new operating environments. GVC is unusually
qualified due to their existing operations in the U.S.. Together,
we are creating a one-of-a-kind platform that we expect will
dominate the U.S. sports betting market."
The new venture will have exclusive access to all U.S.
land-based and online sports betting, online real money and
free-to-play casino gaming, major tournament and online poker, and
other similar future interactive businesses - facilitating entry
into multiple digital gaming verticals under the playMGM and
partypoker headline brands. The venture will also allow for full
integration between the MGM Resorts and GVC loyalty programs,
enhancing the user experience and value proposition for existing
and future customers.
The joint venture is expected to create an unparalleled
experience in the United States and will benefit from:
-- Established Partners. This venture combines the expertise of
two multi-billion-dollar, industry leading gaming and consumer
businesses with a track record of successful joint ventures and
partnerships.
-- Market Leading Brands. Both parties will bring market leading
brands into the venture, leveraging existing consumer loyalty to
drive results. MGM Resorts holds a portfolio of iconic, well-known
brands that the venture will be able to utilise as it enters the
online sports betting and gaming markets. GVC will also be
providing a portfolio of strong and complementary sports betting
and gaming brands, including partypoker.
-- Proprietary State-of-the-Art Technology. The venture will
have access, both as an operator and as a supplier, to the proven,
U.S. licensed, highly flexible, highly scalable state-of-the-art
proprietary multi-channel technology provided by GVC to create a
leading platform with world class content and broad reach and
distribution.
-- Broad Footprint with Large Addressable Customer Base. MGM
Resorts has an established collection of market-leading properties
in the United States, a database of over 27 million M life Rewards
members, and has recently entered into an agreement to purchase the
operating assets of Empire City, providing access to the densely
populated, sports-heavy New York market. In addition, the joint
venture will benefit from the MGM Resorts market access agreement
with Boyd Gaming which provides a pathway to access a total of
fifteen states with an addressable population of approximately 90
million.
-- MGM Resorts' Leading Sports Assets and Relationships. MGM
Resorts will leverage its substantial sports, entertainment, and
professional league relationships for the benefit of the joint
venture. With a portfolio including T-Mobile Arena, over 25 other
arena and entertainment venues, and extensive relationships with
multiple local professional teams and national leagues, MGM Resorts
is a leader in the sports entertainment industry.
-- Scaled Enterprise with High Barriers to Entry and Early Mover
Advantages. By establishing a strong and scaled national platform
with relevant best-in-class assets, the venture will be
well-positioned to capture meaningful market share and will be a
partner of choice for additional commercial partners in the
future.
Under the agreement, MGM Resorts and GVC have agreed to
capitalise the venture with initial commitments of US$100 million
per partner. The venture will establish a separate headquarters to
be located in a major U.S. technology hub, select a leadership team
comprised of best-in-class talent from each company and additional
new hires, and form a four-person board of directors with equal
representation from MGM Resorts and GVC to oversee the venture's
ongoing operations and growth. Both parties are excited to announce
the formation of the joint venture in anticipation of the upcoming
professional American football season.
The commencement of the joint venture operations are subject to
gaming regulatory approvals.
The transaction constitutes a class 2 transaction for the
purposes of the UK Listing Rules. For the purposes of the LR 10.4.1
R (Notification of class 2 transactions), the value of the gross
assets of the joint venture is US$200 million and GVC shall satisfy
the consideration in respect of the joint venture transaction with
cash from its existing balance sheet. Further, there are no profits
attributable to the assets of the joint venture.
Moelis & Company LLC acted as exclusive financial advisor,
Deutsche Bank AG acted as a sponsor and Latham & Watkins LLP
acted as legal advisor to GVC. PJT Partners LP acted as exclusive
financial advisor and Gibson, Dunn & Crutcher LLP acted as
legal advisor to MGM Resorts.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Analyst Call
GVC will host a conference call for analysts on 30 July 2018 at
09.30am (UK time). Participants may join the call by dialing the
following number, approximately 10 minutes before the start of the
call. A copy of GVC's presentation will be available from 07.00am
(UK time) on 30 July 2018 at:
https://gvc-plc.com/investor-relations/presentations/
Participant Dial In: +44 (0)330 336 9105
Participant PIN Code: 3591181#
* * *
ABOUT GVC HOLDINGS
GVC Holdings PLC is one of the world's largest sports betting
and gaming groups, operating both online and in the retail sector.
The Group owns a comprehensive portfolio of established brands;
Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes
and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo,
Gala, Gioco Digitale, PartyCasino and partypoker. The Group owns
proprietary technology across all of its core product verticals and
in addition to its B2C operations provides services to a number of
third-party customers on a B2B basis. GVC acquired Ladbrokes Coral
Group plc on 28 March 2018 and is now the UK's largest high street
bookmaker, with over 3,500 betting shops. The Group, incorporated
in the Isle of Man, is a constituent of the FTSE 100 index and has
licences in more than 20 countries, across five continents.
ABOUT MGM RESORTS INTERNATIONAL
MGM Resorts International (NYSE: MGM) is an S&P 500(R)
global entertainment company with national and international
locations featuring best-in-class hotels and casinos,
state-of-the-art meetings and conference spaces, incredible live
and theatrical entertainment experiences, and an extensive array of
restaurant, nightlife and retail offerings. MGM Resorts creates
immersive, iconic experiences through its suite of Las
Vegas-inspired brands. The MGM Resorts portfolio encompasses 28
unique hotel offerings including some of the most recognizable
resort brands in the industry. Expanding throughout the U.S. and
around the world, the company in 2018 opened MGM COTAI in Macau and
the first Bellagio-branded hotel in Shanghai. It also is developing
MGM Springfield in Massachusetts. The 78,000 global employees of
MGM Resorts are proud of their company for being recognized as one
of FORTUNE(R) Magazine's World's Most Admired Companies(R). For
more information visit us at www.mgmresorts.com.
* * *
Statements in this release that are not historical facts are
"forward-looking" statements and "safe harbor statements" that
involve risks and/or uncertainties. GVC and MGM Resorts have based
forward-looking statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, statements regarding
the expected benefits to be achieved as a result of the formation
of the joint venture and the expected market opportunity. Among the
important factors that could cause actual results to differ
materially from those indicated in such forward-looking statements
include effects of economic conditions and market conditions in the
markets in which GVC and MGM Resorts GVC operate and competition
with other destination travel locations throughout the United
States and the world, the design, timing and costs of expansion
projects, risks relating to international operations, permits,
licenses, financings, approvals and other contingencies in
connection with growth in new or existing jurisdictions and
additional risks and uncertainties. In providing forward-looking
statements, GVC and MGM Resorts are not undertaking any duty or
obligation to update these statements publicly as a result of new
information, future events or otherwise, except as required by law.
If GVC or MGM Resorts update one or more forward-looking
statements, no inference should be drawn that either of them will
make additional updates with respect to those other forward-looking
statements.
GVC CONTACTS:
Investor enquiries Media enquiries
KENNETH ALEXANDER, Chief Executive BUCHANAN COMMUNICATIONS
PAUL BOWTELL, Chief Financial Officer DAVID RYDELL
NICK BATRAM, Director of Investor Relations & External Communications HENRY HARRISON-TOPHAM
PAUL TYMMS, Head of Investor Relations CHRIS LANE
investors@gvc-plc.com +44 (0) 20 7466 5000
gvc@buchanan.uk.com
MGM RESORTS CONTACTS:
Investment Community
CATHERINE PARK
Executive Director of Investor Relations News Media
(702) 693-8711 or cpark@mgmresorts.com BRIAN AHERN
Manager of Media Relations
media@mgmresorts.com
This information is provided by RNS, the news service of the
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END
JVERMMJTMBIJMJP
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