MGM online unit raises $250m

Roar Digital, a U.S. sports betting and online gaming company, said its shareholders, MGM Resorts and GVC Holdings have committed to a second round of investment, bringing the total to $450 million. 

The two companies made an initial investment of $200 million and with the additional round the unit will have about $370 million in investable capital.

Launched in 2018, the company operates under the BetMGM and Borgata brands. It says it’s on track to be operational in 11 states by the end of 2020. 

“We launched this business to combine the best of MGM Resorts and GVC, and establish BetMGM as a leading brand in the US sports betting and iGaming markets,” said Adam Greenblatt, CEO of ROAR Digital. “With broad market access secured, our long-term technology foundations now firmly established, and a high performing team in place, this further unequivocal support from our two shareholders will ensure we can achieve leading market positions in this exciting industry that is growing even faster than our initial expectations.”

Greenblatt added that “BetMGM is on track to generate over $130 million of net revenues this year predominantly from iGaming in New Jersey given the impact of COVID-19. 

“With the return of sports and our growing operations across the US, we anticipate rapid growth in the coming year.”

The company said the US sports betting market is estimated to achieve revenues of approximately $8.5 billion by 2025.