Amid a year of tackling tough UK trends, GVC Holdings (GVC) has reported in its full year results that the group is now in a position to capitalize on the new opportunities, with the group already partnering with MGM Resorts.
While the online gambling company believes that the journey to US states being regulated will take between three and five years, GVC is set to focus upon the development and implementation of a “structure for a successful business”.
The joint-venture with MGM has played an integral role in facilitating GVC’s US success, allowing the group to offer both online and retail sports-betting in states as they begin to regulate.
The full-year report detailed: “MGM’s brand and market access, and GVC’s technology and sports-betting experience is a powerful combination that will enable the joint venture to capitalise on this very significant opportunity and be a leading player in this new market.”
Chief Executive of GVC Holdings, Kenneth Alexander praised the Group’s growth to becoming a ‘global scale operator’, stating: “Combined with the benefit of being a truly global scale operator, together with the opportunities provided by the integration of Ladbrokes Coral and our joint-venture in the US with MGM Resorts, the Board is confident the Group is well-placed to absorb the impact of the Triennial Review and associated tax increases in 2019, and deliver strong EBITDA growth in future years.”
In addition to its US operations, GVC has also lay out the opportunity to expand into the LatAm market following the authorization of both online and retail sports betting in Brazil. The Brazilian Parliament permitted the country’s Government to regulate sports betting, with the process expected to take approximately two years.
The new market will present an array of opportunities for the online gambling group if they choose to expand further. The report added: “A regulated and sensibly taxed Brazilian market represents another major opportunity for the Group.”