MGM MGM Resorts International

   By Maria Armental 
 

Major League Soccer is looking to open new revenue sources and reach fans by signing a deal making MGM Resorts International (MGM) its first official gambling partner, a league official told The Wall Street Journal.

Under the four-year deal with MLS, Roar Digital -- a joint venture between MGM and GVC Holdings PLC -- will be MLS's official sports betting partner. Also, MGM and MLS will develop an exclusive "Free to Play" game that could help drive adoption of sports betting in states where it is already regulated and build a base of potential bettors in other states.

Financial terms of the deal weren't disclosed.

Sports betting is woven into the fabric of the MLS fan base and there are integrity-monitoring companies already in place, said Gary Stevenson, MLS deputy commissioner and president of business ventures, in an interview.

"Sports betting has been part of sport for a long, long time, so it's not like we are breaking new turf here," he said.

MLS is working on changes to its commercial guidelines that would allow for similar sponsorships at the team level, allowing, for example, sports-betting companies to be jersey sponsors, Mr. Stevenson said.

The updated guidelines should be in place in about three months, he said, though the application will vary by state since not each one has legalized sports betting.

Best known for its Las Vegas casinos such as the MGM Grand and the Bellagio, MGM has reached similar deals with the National Basketball Association, National Hockey League and Major League Baseball since a Supreme Court ruling last year paved the way for legalized sports betting across the U.S. (www.wsj.com/articles/supreme-court-ruling-for-new-jersey-opens-door-to-sports-betting-1526308430?mod=article_inline)

Rival casino operator Caesars Entertainment Corp., meanwhile, has reached deals with the NFL and Turner Sports, now part of AT&T Inc.

MGM Chief Executive Jim Murren pointed to the Caesars-Turner deal in a recent earnings call, noting that MGM sees sports betting "as a larger opportunity than simply betting on sports."

The MLB deal opened opportunities in Japan, with MGM hosting a series of roadshow events that MLB was doing in the country, Mr. Murren said.

Sports leagues see expanded betting as a new -- and potentially large -- source of revenue.

New Jersey, where sports betting became legal in June, generated more than $1.2 billion in wagers in 2018. Nearly two-thirds of the total came from online betting, according to the state's Division of Gaming Enforcement.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

March 19, 2019 19:30 ET (23:30 GMT)

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