For now, everything stays the same for Borgata’s New Jersey online gambling presence.
Earlier this month, GVC Holdings was approved to continue operating as a gaming licensee by the New Jersey Department of Gaming Enforcement. GVC had bought Borgata’s online gambling partner, bwin.party, earlier this year.
GVC’s dealings were up to NJ standards
Now that GVC has its full license, it can continue to offer online gaming via Borgata, without a cloud over the relationship of the two parties. There were reports earlier this year that GVC might have a difficult time gaining a license after the DGE announced it would take a company’s operations outside the U.S. into consideration when determining whether or not to grant a license.
GVC is based in the Isle of Man — the home of PokerStars — and has licenses in 14 countries, meaning it has already undergone scrutiny from some regulators. Although some thought GVC would not be suitable under NJ regulations, the company announced via a press release the granting of its license.
In the release, GVC CEO Kenneth Alexander said he was “delighted the DGE has confirmed that GVC meets its stringent regulatory requirements and that bwin.party can continue to operate in New Jersey under its current licenses.” That includes online poker site PartyPoker.
According to the release, the DGE told GVC the license was approved because “GVC and its individual qualifiers possess the requisite good character, honesty, and integrity should it file for a transactional waiver.”
Borgata backup plan no longer necessary
In an effort to hedge its bets on GVC’s licensing, Borgata started talks with turnkey internet gaming solutions provider Game Account Network.
As Online Poker Report’s Joss Wood put it, “That may have simply been a precautionary stopgap measure, if GVC had not won regulatory approval in the state.”
Now that its online partner is licensed, Borgata will build upon the more than $115 million it has amassed in online gaming revenues since the Internet industry was allowed in 2013.
However, Borgata is also undergoing a bit of a shakeup, as MGM Resorts bought out Boyd Gaming’s 50 percent share of the Atlantic City property. What changes that might mean for online gambling is not yet known.
GVC Has Long History of Acquisitions
According to GVC’s website, the international betting and gaming conglomerate is no stranger to buying up gambling enterprises. It’s first acquisition took place in 2004 when it bought CasinoClub. From there, GVC accomplished the following milestones in its history:
- In 2007, current CEO Kenneth Alexander took over, a move which helped “reinvigorate” the organization.
- Two years later, GVC acquired Betboo, an entity which focused its efforts on Brazil.
- In 2012, it launched talks with William Hill to acquire online sports betting and oddsmaker Sportingbet.
- The Sportingbet acquisition went through in March 2013
That GVC was able to acquire bwin.party was a bit of a coup, as bwin.party had already agreed to a “cash and share offer” of more than one million dollars from 888 Holdings.
Upon the finalization of the deal, GVC was quoted as saying it hoped it would open up opportunities in certain Asian and African markets where the bwin name was associated “with a number of internationally recognized football brands.”