MGM Resorts International MGM and GVC Holdings’ joint venture, Roar Digital’s sports betting brand, BetMGM and The Denver Broncos recently entered into a multi-year agreement. Per the deal, BetMGM and MGM Resorts will become an official sports betting partner of the Broncos. However, the financial terms of the deal has been kept under wraps.
BetMGM and MGM Resorts will provide premium fan experiences including a new BetMGM Lounge at Empower Field at Mile High Stadium and VIP travel packages. Premium fans can also avail benefits of MGM Resorts' loyalty program — M life Rewards. The partnership also includes a free-to-play mobile game. Fans will also get the opportunity to win MGM Resorts prizes, which include trips to MGM Resorts properties nationwide through their sports prediction skill.
BetMGM's Chief Marketing Officer Matt Prevost said “This partnership with the Broncos allows us to showcase not only a premier BetMGM sports betting and gaming platform, but also the world-class entertainment experiences delivered by MGM Resorts.”
Sports and iGaming Betting to Drive Growth
MGM Resorts continues to focus on sports betting expansion. Recently, BetMGM and GVC Holdings — announced second round of investment. This brings the total investment to $450 million. In the first round, both the companies have invested $200 million. Ever since its launch in 2018, the company has done extremely well and is on track to operate in 11 states by the end of 2020.
BetMGM is likely to generate more than $130 million of revenues in 2020 primarily from iGaming in New Jersey on account of the COVID-19 impact. Due to increase in operations across the United States, the company anticipates sharp growth in the coming year. The company expects to achieve revenues of nearly $8.5 billion by 2025.
The company has secured market access to 19 states. It currently has operations in seven states and expects to launch in four more states by the end of 2020. In iGaming, the company holds nearly 18% market share in New Jersey. It also has gross gaming revenue growth of 210% year over year in second-quarter 2020. The US iGaming market is estimated to achieve revenues of nearly $6.9 billion by 2025.
Shares of MGM Resorts have fallen 51.9% year to date, compared with the industry’s decline of 28.5%. MGM Resorts, which shares space with Wynn Resorts, Limited WYNN, Las Vegas Sands Corp. LVS and Boyd Gaming Corporation BYD, carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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