GVC Holdings has hailed 2018 as a “transformative” year, something that it will use as motivation as takes aim at the US market in 2019.
Outlined in a March 5 shareholder report, last year’s balance sheet showed net gaming revenue was up 9% to $4.66 billion. Although unexpected costs dragged down actual profits, the gaming operator still ended 2018 in a positive position.
GVC Building an Empire Ahead of US Takeover
Helping fuel its financial surge was the takeover of UK gaming brand, Ladbrokes Coral. A major presence in both the live and online betting sector, the acquisition has seen GVC become a major player in all sectors of the industry.
However, despite purchasing one Europe’s top brand for $5.2 billion, GVC still expects its UK ventures to struggle this year. With new regulations and taxes set to hit on April 1, the operator has said the US market will become a major focus in the coming months.
Anticipating the change and reacting to the dissolution of PASPA, GVC formed a partnership with MGM Resorts in July 2018. As part of the deal, the two companies have pledged to invest a combined $200 million to establish sports betting bases in all regulated states.
Land of Opportunity for GVC
For GVC, the deal is a route into the lucrative US market via venues such the Borgata. For MGM Resorts, the partnership means it now has access to some of the most sophisticated online betting technology in the world.
Buoyed by this relationship and cautious of changes closer to home, GVC CEO Kenneth Alexander said the “US business is well placed for growth” and the “appointment of key roles” is imminent.
As GVC extends its presence in the US, it will mean a wealth of new opportunities for gaming fans and sports bettors. With Partypoker and Bwin part of the GVC stable alongside Ladbrokes Coral, the operator has a wealth of resources at its disposal.
In tandem with its physical attributes, Alexander has years of experience in the highly competitive European market. With sports betting in the UK worth billions each year, the GVC boss will be more than capable of seizing new opportunities as they arise in the US. Although GVC can only grow as fast as regulation spreads across the States, gamers and bettors should be pleased another major operator is setting its sights on the market.