IAC Leaders Join MGM Board as Media Giant Bets Big on Digital Gambling

MGM Resorts International has welcomed two IAC leaders to its Board of Directors after the media and tech company made a significant investment in the Las Vegas hotel and casino giant earlier this month.

MGM announced Thursday that IAC Chairman Barry Diller and CEO Joey Levin have joined its board and that it now includes 14 members.

Earlier this month, IAC spent nearly $1 billion on a 12% stake in the casino resort operator. Mr. Diller said in a letter to shareholders that the investment was a “once in a decade opportunity” and that what really attracted them to MGM was “an area that currently comprises a tiny portion of [the company’s] revenue – online gaming.”

Commenting on the appointment of the two IAC leaders to MGM’s board, Paul Salem, Chairman of the casino operator, said that they “couldn’t be more excited to welcome Barry and Joey to our board and to benefit from their collaboration.”

Mr. Salem went on that IAC’s significant “investment, expertise, and support” came at an important time for MGM and that these will play a key role in the company’s strategy to “seize emerging opportunities and lead the industry with unparalleled in-person and digital experiences.”

MGM ventured in the digital gaming and sports betting spaces two years ago when it teamed up with UK-based multi-brand gambling operator GVC Holdings and formed the Roar Digital joint venture.

New Board Appointments to Help MGM Marry Online and Resort Experiences

MGM President and CEO Bill Hornbuckle said that the new members of the company’s board “bring the know how and vision to help us to marry our online and resort-based experiences and build brand loyalty to increase our wallet share in each area.”

Of their investment into MGM, which operates multiple properties on the Vegas Strip as well as in Maryland, Mississippi, Michigan, Massachusetts, and Ohio, Mr. Levin, IAC’s CEO, said earlier this month that they have grabbed a unique opportunity and plan to remain a minority investor and a long-term strategic partner of the casino operator, while helping it to continue to grow its online sports betting and gaming businesses.

Mr. Levin also noted that MGM owns a “meaningful piece of preeminent brand in a large category with immense potential”, demonstrating IAC’s confidence in the future of digital gambling in the US.

MGM’s interest and focus in online gambling will certainly continue to grow as brick-and-mortar casinos around the US and the rest of the world, its properties included, are struggling to fend off the effects of the Covid-19 pandemic.

The company’s digital growth will also be facilitated by the fact that more and more states have been moving to embrace online sports betting or casino-style gaming or both in a bid to secure tax money from a sector that already services US players in a black-market manner.

Follow us on Facebook and Twitter to stay up to date on the day’s top casino news stories