MGM Resorts International (NYSE: MGM) announced on Monday it would partner with Britain’s GVC Holdings PLC (LON:GVC) to create a sports betting and online gambling platform in the US.
The announcement of the 50-50 joint venture skyrocketed shares of GVC as much as 7.5 percent to a record high of 1,178 pence, while MGM shares are up 2.5 percent today.
The companies will initially invest USD 100 Million each in the joint venture, which will have a U.S. headquarters, said GVC, which owns the Coral, Ladbrokes and Sportingbet brands.
“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, “MGM Resorts International Chairman and CEO Jim Murren said in a statement.
GVC said the joint venture would get access to 15 U.S. states with a population of 90 million, adding that the venture will get access to all U.S. land-based and online sports betting while integrating both companies’ customer loyalty programs.
GVC, which has grown rapidly through acquisitions including the purchase of Ladbrokes late last year, has been looking to expand in the United States, after the U.S. Supreme Court paved the way to legalize sports betting.
The company said in July that it expected to post full-year results in line with expectations.