MGM Resorts International (NASDAQ:MGM) is one of the top names in entertainment, casino gaming, and hotels. In addition to its numerous properties, MGM has expanded into sports betting with the launch of BetMGM Sportsbook. Although there’s no shortage of competition, BetMGM Sportsbook has captured a significant amount of market share. Here’s how MGM Resorts International has entered the ever-growing sports betting space.
When Did MGM Get Into Sports Betting?
May 14, 2018 was a pivotal day for the eventual launch of BetMGM Sportsbook, as the Supreme Court overturned the Professional Amateur Sports Protection Act (PASPA). This let states offer their very own sports betting markets, and now more than half of the U.S. offers online sports betting. The overturning of PASPA allowed BetMGM Sportsbook, alongside other platforms like DraftKings, FanDuel, and Caesars to expand into new markets.
In July of that year, MGM Resorts International struck a deal with gambling company Entain Holdings, leading to the introduction of BetMGM. Now, BetMGM Sportsbook is available in the top sports betting states like New Jersey ($3.8 billion in lifetime revenue), New York ($3.7 million), and Nevada ($2.3 billion). Most recently, BetMGM went live in North Carolina, a state that launched sports betting on March 11, 2024. Additionally, the brand has released its own online casino gaming app with the rollout of BetMGM Casino.
BetMGM Market Share
Since PASPA was overturned, there’s been a big battle for market share in the sports betting industry. A recent report by Eilers & Krejcik Gaming has detailed the gross gaming revenue share among the top betting brands for both sports betting and online casinos. FanDuel (35%) and DraftKings (32%) represent the majority of betting share for Q4 of 2023. BetMGM, meanwhile, came in third place with 11% of the market share. As it stands, BetMGM is firmly in third place, well ahead of Caesars Sportsbook which represents approximately 5%.
While BetMGM is ahead of plenty of other platforms, it’s still seen a decline since Q1 of 2022, when BetMGM controlled over 20% of the gross gaming revenue share in sports betting and iGaming.
Many MGM Properties Feature Retail Sportsbooks
Outside of BetMGM’s online betting platforms, the brand is also available in the form of various retail sportsbooks. These in-person betting spots are located at many MGM Resorts casinos across the U.S. Some examples include retail BetMGM Sportsbooks at MGM Springfield, MGM Northfield Park, and MGM National Harbor. MGM has also opened retail sportsbooks in or near many stadiums, such as National Park (home of the Washington Nationals) and Great American Ballpark (home of the Cincinnati Reds). It’s important to note that retail sports betting isn’t nearly as popular as online sports betting, due to the convenience of placing wagers directly from a smartphone.
BetMGM Had A Strong 2023
A 2023 financial report for BetMGM showed definite growth for the betting brand. BetMGM’s net revenue hit $1.96 billion, representing a 36% year over year increase. Profitability is a possibility in the future, especially considering BetMGM had positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2023 after expecting $67 million in losses. The brand’s digital operations were strong, with a 14% increase in same-state net revenues. BetMGM’s success in 2023 can be attributed to a number of factors, such as its wide availability across North American markets and major partnerships, such as the deal with Charlotte Motor Speedway that allowed BetMGM Sportsbook to launch in North Carolina.
Additionally, BetMGM showed a 14% market share in the sports betting space in Ontario. This, alongside a 22% online casino share, show that BetMGM has been embraced by the Canadian betting market.
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