Bwin.Party digital entertainment Plc, the gambling entity that resulted from a merger between Bwin and Party Gaming, has announced that it has entered into a potentially lucrative deal that could return it to the US gambling market. The group entered into a joint venture contract with the two Las Vegas based casino groups, Boyd Gaming and MGM Resorts.
The three issued press releases this week outlining the creation of a company that would set up web platforms and would put Bwin.Party in a position to enter the market when it becomes legalized and regulated.
Bwin.Party will have a 65% majority stake in the company, while Boyd Gaming will have a 10% stake. MGM Resorts will own the balance. According to the press releases, all three companies will have board representation.
According to a separate contract, Boyd Gaming entered into an agreement with Bwin.Party that it would use the online company’s technology to establish its own poker brand in the United States once the appropriate legislation has been passed. Although not yet confirmed, MGM is also thought to have entered into a similar 15 year agreement with Bwin.Party.
The President and Chief Executive of Boyd Gaming, Keith Smith said: “We see online poker as a compelling future growth opportunity for our company, and this agreement would position Boyd Gaming to quickly become a leader in the online poker market in the United States.”
Although Bwin.Party cannot predict when changes will come about in the US online poker market, the group was sure that it was gaining “significant momentum” by entering into these agreements. The venture also allows Bwin.Party to apply for a Nevada Gaming Commission gambling license.