MGM Resorts and GVC Holdings Create BetMGM Joint Venture – Deal Analysis

Deal Overview

MGM Resorts International and GVC Holdings incorporated Roar Digital LLC — the entity that operates BetMGM — in July 2018, one month after the US Supreme Court’s PASPA ruling. The 50/50 joint venture combined MGM’s US casino brand recognition, retail sportsbook footprint across MGM properties, and regulatory relationships in multiple American states with GVC’s sports betting technology platform (derived from the bwin.party acquisition), trading expertise, and online gambling operational capability. Each partner contributed $200 million in seed capital, with subsequent funding tranches bringing total investment above $1.4 billion by 2023.

The Strategic Logic

The JV structure solved a specific problem for both partners. MGM had the physical infrastructure, regulatory access, and brand — but no digital gambling technology or online operational experience. GVC had world-class sports betting technology and online casino expertise — but no US market access, no retail sportsbook presence, and no American brand recognition. Neither company could have built a credible top-tier US operator from scratch within the competitive window post-PASPA. The JV allowed both to contribute their specific advantages and share the capital requirements of what became a multi-year investment before profitability.

BetMGM’s Market Position and Challenges

BetMGM established itself as the leading US iGaming (online casino) operator in its early years, before FanDuel and DraftKings expanded their casino offerings and eroded that position. In sports betting, BetMGM has maintained approximately 12% market share — solidly third behind FanDuel (43%) and DraftKings (28–30%) — a gap that has proven difficult to close despite significant marketing investment. The JV recorded an EBITDA loss of $123 million in the first half of 2024, reflecting the ongoing profitability challenge of competing against Flutter’s and DraftKings’ scale advantages.

MGM’s January 2021 takeover approach for Entain — rejected at an £8.1 billion valuation — and subsequent industry speculation about the JV’s future highlight the structural tension in a 50/50 partnership between two companies with diverging strategic interests. The JV remains operational but its long-term ownership structure is an active topic of industry discussion.

Key Facts

• JV incorporated: July 2018 (Roar Digital LLC)
• Seed capital: $200M per partner ($400M total)
• Total cumulative investment: $1.4B+ through 2023
• BetMGM 2024 net revenue: $2.1B+
• US sports betting market share (2025): ~12%
• MGM takeover approach for Entain: rejected at £8.1B (January 2021)
• States live: 28+ across sports betting and iGaming

Market Signal

The BetMGM JV is the definitive case study in US market entry via structured partnership — and the cautionary tale of 50/50 joint ventures in fast-moving markets. Both partners gained market access they could not have achieved independently, but the equal ownership structure creates governance complexity when strategic priorities diverge. For iGaming operators considering US market entry through partnership rather than outright acquisition, BetMGM’s trajectory provides essential benchmarking data on capital requirements, market share trajectories, and partnership management challenges.

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