Posted September 03, 2018 03:30:52 The first major Australian bank has launched an interest-free mortgage business, MTG Gaming, to build its financial muscle in the lucrative world of gambling.
Key points:MGM Gaming will focus on the lucrative online gaming industryThe new company will create its own credit and debt management services and its own online casino siteMGM, the Australian branch of Chinese investment bank State-owned China Unicom, has secured $10 million in funding to launch MTGGaming in the US and Europe.
It has already signed a lease to operate in a handful of states including Nevada, Florida, Texas, New York, Pennsylvania and Washington DC.
Its chief executive officer Peter Lee said MTG would create an industry-leading online gaming platform with more than 100 million users.
“The technology that we have developed will enable us to provide a service which is better than what’s offered today, in terms of security, liquidity, access and convenience,” he said.
“And in the long term, we will have more than 150 million MTG accounts open and more than 60 million MTF deposits.”
The company has been in business for just over a year, but its success is the latest sign that online gaming is emerging as a lucrative source of business for the Chinese banking sector.
Last year, Chinese bank ICBC announced plans to invest $2.6 billion in a virtual casino business called Magic Blackjack, which has been widely seen as a competitor to online casinos such as online poker.
In September, Chinese company Shanghai Sino Group and Taiwanese conglomerate Sinovation Group announced they would invest $1 billion in the same venture.
The MTG Group’s main focus is on the US, where MTG gaming has been relatively unknown until recently.
“I think the opportunities are enormous in the gaming space, so the opportunity for us to build our business, we are excited about it,” Mr Lee said.
The company said it will be based in the heart of Las Vegas, which hosts casinos, hotels and other attractions.
Its US offices will include locations in Phoenix, Tucson and Las Vegas.