Gambling operator Borgata has scotched all speculation that it will be exiting its partnership with online gambling platform provider GVC for its New Jersey online gambling business. There have been rumours over the last year or so that the casino company was looking out for another partner. In fact, GVC’s purchase of bwin.party in the beginning of 2016 had prompted industry watchers to question whether the relationship was unravelling.
Furthermore, there have been whispers that Bortaga was choosing Pala Interactive, with which it already has a business deal for a New Jersey casino and bingo site, and GAN. However, Pala in particular is a new platform the might have glitches galore.
A senior executive at GVC was questioned about the possibility of a split. The executive very emphatically stated that it was eager to carry on with its relationship with Borgata. As a matter of fact, the company recently applied to the New Jersey Division of Gaming Enforcement for an online gaming licence. It is important to point out here that GVC was allowed a transactional waiver by the same regulatory body in June 2016. The NJ DGE had decided that bwin.party licenses to operate in New Jersey would continue to be valid even after the company had been purchased by GVC.
Borgata / GVC Partnership Works Well
Borgata has consistently managed to outperform all other New Jersey online gambling sites. In fact, it had kept up its winning streak for almost three years after its launch. GVC’s platform has been an important reason for its continued success. Hence, it really doesn’t make much sense for it to break up a winning partnership. It is very likely that the casino operator was unhappy with GVC’s delay at procuring a gaming license. But this shouldn’t be a problem any longer. Therefore, there might have been other reasons for the company’s reassessment of its business partner, if indeed it did so.
Complete Involvement Required and Borgata Promises Just That
There’s a possibility that Borgata thought that GVC is insufficiently committed to the US market. This has happened in the past with the Golden Nugget Casino too. At the time, Bally Technologies was acquired by Scientific Games. Golden Nugget decided to switch to NYX’s gaming platform. It required a partner that was fully committed to working with it.
As Thomas Winter, the Golden Nuggets’ Head of Online Gaming, mentioned something interesting. He said that the company wanted a partner that would work on making continuous improvements to its platform. This would in turn enhance the players’ experiences. The new partnership worked spectacularly for the casino company. It’s very likely that Bortaga might have aimed for the same thing.
The Results of Bortaga Could Be Better
Borgata does have reason to be worried about its long term performance. A closer examination of its market share indicates that its lead is slight. As a matter of fact, it was overtaken by the Golden Nugget last October. In spite of the fact that the online site did not have a poker room. What’s more, the leadership team at Borgata most likely expects their gambling site to replicate the land based casino’s dominance over the market. The company’s online poker site has had a particularly disappointing showing, coming after 888 and PokerStars.
As things stand now, it seems that Borgata and GVC will stick together and try to increase their market share. The NJ DGE has given the gaming platform company the green light. It will definitely get down to work and provide Borgata with a platform that helps it expand its business. Besides, the gaming operator would be taking a major risk by switching platforms. It’s commonly known that any irregularities could result in them losing their market share.