Boyd, MGM, Bwin.Party Form Alliance to Launch US Online Poker
Jim Ryan, the co CEO for Bwin.Party Digital Entertainment Plc., had stated last month that the giant online gambling company was conducting discussions with potential partners to launch an online poker gaming company in the US, but hadn’t mentioned any names. But recently, Bwin.Party’s US partners have issued a press statement regarding this crucial partnership.
MGM Resorts International and Boyd Gaming Corporation issued a press statement on Oct 31, in which they stated that they have formed an alliance with Bwin.Party to establish a US-based online poker gaming company to provide real money poker services to US online poker players. However, such a company can be launched only after the US federal government legalizes and regulates online poker.
According to the deal signed among Bwin.Party, MGM Resorts, and Boyd Gaming, they would own this online poker gaming website jointly. The venture would comprise several prestigious poker brands belonging to Bwin.Party, such as the World Poker Tour (WPT) and Party Poker. Around 65 percent of the new venture would be owned by Bwin.Party while MGM Resorts will own a 25 percent share and Boyd Gaming would own a 10 percent share.
Boyd Gaming and MGM Resorts have signed separate agreements with Bwin.Party, enabling them to launch online poker rooms powered with Bwin.Party’s online poker gaming software. This agreement gives Bwin.Party access to the lucrative US online poker market as soon as the US government legalizes online poker, something that is bound to happen soon. The US online poker market is estimated to be worth anywhere in the range of $3 billion to $5 billion per year. Market experts say that this venture is expected to grab at least 20 percent of the total market.
According to Jim Ryan, these arrangements are meant to put Bwin.Party in an advantageous position whenever the online poker industry gets legalized and regulated in the US. When this happens, US online poker players can gain access to a number of Bwin.Party, Boyd, and MGM online poker rooms.
Keith Smith, the CEO of Boyd Gaming, said that online poker rooms belonging to each stake holder will complement one another. Smith as well as Jim Murren, the chairman of MGM Resorts, said that Bwin.Party is the best partner for such a venture because the company is already successful and is part of the highly regulated European online poker market.
Murren voiced his opinion that online gambling is the next best thing that can happen to land-based casinos and that those who operate land-based casinos will find it very easy to get licenses to launch online gambling businesses in America. However, both Smith and Murren are not sure when exactly online poker will be legalized in the US.
Carlo Santarelli, the gaming analyst at Deutsche Bank, was much surer about legalization of online poker in the US than Smith and Murren. He says that there is a 50 percent chance of the US online poker industry getting legalized next year, which means that Boyd and MGM will be in a lucrative position soon.
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