Bwin.Party Joint Venture with MGM and Boyd

LSE-listed online gambling firm Bwin.Party Digital Entertainment Plc has partnered with large US land gambling concerns MGM Resorts International and Boyd Gaming Corp, to offer online poker in the United States as soon as online gambling is legalised and regulated.

Bwin.Party, which is based in the online gambling-friendly jurisdiction of Gibraltar, announced that it will own a 65 percent stake in the new US online poker joint venture called Federal NewCo, while MGM will own a 25 percent stake and Boyd a 10 percent stake.

Said Bwin.Party co-CEOs Jim Ryan and Norbert Teufelberger, 'We're very excited to be working with MGM and Boyd. Combining their significant assets and regulatory expertise with the strength of our PartyPoker and World Poker Tour brands, all supported by our in-house technology, makes us perfectly positioned for any future opening of the US online poker market.'

'Our strategy has been designed to address any and all legislative outcomes, whether federal or state-by-state,' they continued.

The CEOs were referring to the fact that the legalisation of online gambling in the United States rests firmly in the hands of politicians, both in Washington DC and the respective states. While some US politicians favour the regulation and taxation of online gambling in the US, the majority are against it, citing a potential increase in problem gambling as the most common reason why.

Bwin.Party Will Provide Poker Software and Support

However, should federal legislation eventually open the way for a regulated online gambling industry in the US, the Bwin.Party, MGM and Boyd joint venture would be perfectly placed to offer US poker fans access to the renowned World Poker Tour and PartyPoker brands, with Bwin.Party providing the online poker software platform and support.

Separate to the formation of Federal NewCo, MGM and Boyd also announced that they have each signed 15-year deals with Bwin.Party to provide them with the necessary online poker technology platform and associated services for them to launch their own branded online poker rooms, subject to US online gambling regulations.

Said Jim Murren, Chairman and CEO of MGM Resorts International, 'MGM has long been supportive of federal legislation to strengthen UIGEA and provide the needed regulations and consumer protections for online poker. MGM is proud to have bwin.party as our partner as they have the assets and experience that, combined with our brands, can ensure a secure, fair and entertaining online poker experience.'

Added Keith Smith, President and CEO of Boyd Gaming, 'Should Congress enact legislation to legalise Internet poker, this agreement will allow us to partner with the world's most experienced and prestigious online operator to offer a secure, fair and entertaining experience for players in the United States.'