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MGM Resorts' (MGM) BetMGM Partners With Shift4 Payments

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·3 min read
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MGM Resorts International’s MGM BetMGM recently announced its collaboration with Shift4 Payments, becoming the preferred payments provider of the former. Following the announcement, shares of the company gained 3% during trading hours on Jun 21.

Per the agreement, Shift4 will support BetMGM’s online gaming and sports betting transactions through its PCI-validated point-to-point encryption and advanced tokenization technology. To this end, the company will offer its end-to-end processing technology to deliver a secure, integrated payment solution.

With respect to the collaboration, Maria Tomlinson, head of Payments at BetMGM, stated, “Shift4’s end-to-end solution will deliver a superior payment experience for our customers, with a streamlined transaction experience and enhanced security. The company’s technology, capabilities, security, and service made it an easy decision to partner with them.”

Increased Focus on BetMGM

Ever since its launch in 2018, BetMGM has put up an outstanding show and operates across 12 states now. As of February 2021, BetMGM’s market share stood at 22% in its active markets. It also reported strengthening of position in New Jersey, with market share gains of more than 30%. Notably, BetMGM continues to gain further market share.

Meanwhile, BetMGM operations contributed $163 million to net revenues during first-quarter 2021. Markedly, the operation results are encouraging compared with the total net revenues of $178 million in 2020.

Given the positive momentum in markets, coupled with the unique and unparalleled online and off-line offerings, the company is optimistic about its long-term growth with revenue expectations of more than $1 billion in 2022.

Price Performance

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Zacks Investment Research

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Coming to the price performance, shares of MGM Resorts have appreciated 33.6%, so far this year, compared with the industry’s 12.7% growth. Notably, the company has been benefiting from sports betting expansion, asset light strategy, non-gaming activities and digital initiatives. Also, the company is confident regarding prospects in Macau and continues to invest in the same. Nonetheless, earnings estimates for 2021 have moved up over the past 30 days, mirroring analysts’ optimism regarding the stock’s growth potential.

Zacks Rank & Key Picks

MGM Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Better-ranked stocks in the same space include Boyd Gaming Corporation BYD, Red Rock Resorts, Inc. RRR and Century Casinos, Inc. CNTY. Boyd Gaming and Red Rock sport a Zacks Rank #1, while Century Casinos carries a Zacks Rank of 2 (Buy), at present.

Boyd Gaming has a three-five year earnings per share growth rate of 19.8%.

Red Rock has a trailing four-quarter earnings surprise of 166.2%, on average.

Century Casinos’ 2021 earnings are expected to surge 119.9%.

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MGM Resorts International (MGM) : Free Stock Analysis Report

Boyd Gaming Corporation (BYD) : Free Stock Analysis Report

Century Casinos, Inc. (CNTY) : Free Stock Analysis Report

Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report

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Zacks Investment Research