London-based gaming company GVC Holdings, co-owner of BetMGM, has announced the acquisition of Bet.pt, a Portuguese online gambling company. GVC Holdings has also upgraded its earnings guidance for the full year.
Bet.pt was one of the first to enter the regulated Portuguese market, receiving its sports-betting license in 2016 and its casino license in 2017. The Portuguese gambling market is growing fast, with revenue expected to more than double by 2023. Bet.pt is one of the leading online operators in the country, with a particularly robust sports betting operation.
GVC Robust Revenues for 2020
GVC’s net overall gaming revenue rose by 12% in Q3, year-over-year, with online non-gaming revenue up 26%. Also, European and UK retail revenues are within 10% of those before enforced COVID-19 closures.
Online sports betting revenue has also exceeded that of 2019. BetMGM, GVC’s joint venture with MGM Resorts, is now live in eight states. The sports betting, casino, and poker app seized 17% of the market share.
A Message from the CEO of GVC
CEO of GVC, Shay Segev, had this to say; “This has been another robust period for GVC. We’ve completed our 19th consecutive quarter of double-digit growth online, gaining market share in all major territories. The momentum that we’re seeing across the group is a clear testimonial to the resiliency of our very diversified business model. Moreover, the appeal of our brands and products, the power of our proprietary platform, and the dedication of our hard-working dedicated teams around the world made this happen.”
“Furthermore, GVC is primed for future growth. In the US, BetMGM continues to go from strong point to strong point as we launch into new states. Further integration with our partners’ customer perspectives and delivering innovative products and features keep BetMGM on top. With a market share of approximately 17% across all live markets, we’re making great progress towards becoming the leading operator in the US.”
“The acquisition of Bet.pt is consistent with our strategy of growing into new markets that are either regulated or becoming regulated, to support our ambition of international growth.”
“While the risk of even more government restrictions as a result of Covid-19 means that we remain cautious in the short-term, in the longer term we’re confident of being able to continue our sustainable growth for all of our stakeholders.”
BetMGM Strategic Partnerships
In the US, BetMGM has made quite a few strategic partnerships, ensuring its continued growth and hefty market share. For example, the partnership with Scientific Games will provide the platform with high-quality, popular online slots and casino games.
However, BetMGM has become the exclusive sports betting partner of several major league teams, including the Tennessee Titans, Las Vegas Raiders, Denver Broncos, and the Detroit Lions. Also, BetMGM has partnered with the PGA Tour and NASCAR. This will ensure a solid market share for the BetMGM sportsbook.
Despite the setback the COVID-19 lockdowns had on major league sports betting, the team at BetMGM remains optimistic about the future. However, the sports betting app still needs to play catch-up with heavyweights DraftKings and Fanduel.
US Sports Betting Growth
Since 2018, when all 50 states could offer legal sports betting, the industry has exploded. During a 2019 investor event sponsored by Morgan Stanley, Hard Rock, Mohegan Sun, and MGM Resorts executives predicted that by 2025, the sports betting industry would rake in around $8 billion in annual revenue.
Right now, there is a lot of deal-making in the burgeoning sports betting industry. For example, Caesars Entertainment acquired UK betting company William Hill for $3.7 billion recently. Caesars and William Hill have had a U.S. joint venture for some time, with William Hill running Caesars online and retail sports betting operations in every state in Caesars’ owns properties. Caesars currently owns 54 US properties in 16 states.
Likewise, Wynn Resorts made a deal with GAN Limited to provide the platform for its online sports betting and online casino games in Michigan. Wynn will manage the casino operation for the Sault Saint Marie Tribe of Chippewa Indians. That deal could pave the way for Wynn to use GAN software in its home base of Nevada.