InterActive Corp (IAC) Wants MGM Resorts to Enter in Online Gaming

InterActive Corp (IAC) Wants MGM Resorts to Enter in Online Gaming

InterActive Corp (IAC) has been buying big chunks of MGM Resorts International shares in the last two months. The firm wants the casino giant venturing out further into the online gaming realm.

Online gaming is the future

Online gaming is the future of the industry. The online gaming industry includes slots and poker and sports gambling. Some retail gaming experts determined that online gaming must not take centerstage. Both live gaming and iGaming can coexist together in this era. A few casino companies have already been working on the online gaming industry. IAC also believes that there is scope for online gaming in the future.

InterActive Corp (IAC) Wants MGM Resorts to Enter in Online Gaming

IAC chair Barry Diller sent a letter to investors this week, talking about the company’s $1 billion into the MGM businesses. Diller is also the founder of the Fox Broadcasting Company and the chair Expedia Group. IAC recently spun off Match.com, owning 80% shares in the company. The money it made helped it get larger chunks of MGM shares. Match shareholders took the ownership of the online dating site, alongside its sister concerns- Hinge, Tinder, and OkCupid.

The letter was signed by Diller and IAC CEO Joey Levin. The company also owns Care.com and The Daily Beast. In the letter, it explains that investment into MGM was a smart move since the company has a weak position in the iGaming industry. This unique position will help provide them better growth opportunities.

MGM is already working on its iGaming plans

The IAC believes that MGM has given it a once in a decade opportunity to own a significant block of its shares. The company has great potential to move online and has already been taking steps to achieve its objectives.

MGM is working on the BetMGM online sportsbooks alongside partypoker. Both are operated via its subsidiary ROAR Digital, which was formed in partnership with British giant GVC Holdings. The two partners poured in $250 million to back the subsidiary last month after an initial $200 million investment in 2018. By the end of the year, ROAR will be operating in at least 11 states with new regions added at a faster pace in the upcoming three years.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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