MGM Resorts International (NYSE: MGM) is one of the world’s largest operators of land-based casinos. It manages some of the most popular venues on the Las Vegas Strip and elsewhere. Though, it’s internet gaming and sports wagering that has some analysts aflutter.
MGM stock rose 29.32 percent year to date, making it one of the best performers among large-cap gaming equities. It also indicates that investors believe the BetMGM business is a force to be reckoned with iGaming and sports betting spaces.
Analysts agree, with some predicting that BetMGM will be a significant driver of long-term profits for the gaming company. The unit is a 50/50 joint venture between Mandalay Bay and Entain Plc of the United Kingdom (OTC: GMVHY).
BetMGM Believable Catalyst for MGM Stock
BetMGM ranks third in the US online sports betting market, behind Flutter Entertainment’s FanDuel unit and DraftKings.
Data suggests, however, that BetMGM is making a solid comeback, pilfering market share from competitors in crucial states. BetMGM is ascending in the iGaming arena, leveraging superior branding through its well-known brick-and-mortar casinos.
“The investor’s message is best summarized in the Michigan case study. It explains how BetMGM arose as the market leader in both sports betting and iGaming. And the way it used an existing retail presence and M life database via MGM Grand Detroit, affiliations with local professional sports teams, and air support from key media partnerships,” says DeCree.
Rapid Growth Ahead
On a percentage basis, BetMGM’s growth is astounding. According to Morningstar analyst Dan Wasiolek, the company’s iGaming and online sports betting market in the US was around 10% last year. It has now risen to 20%.
“We attribute these gains to the entity’s omnichannel presence, which includes 35 million MGM loyalty members, strong media and sports partnerships, assisting new membership, and more,” the analyst explained.
He expects BetMGM to expand to 20 states in the next year, up from 12 today, and 24 in the long run. If that last figure is met, the operator will be in front of two-thirds of the US sports betting population.