MGM Resorts' (MGM) BetMGM Partners With Washington Nationals
MGM Resorts International MGM and Entain Plc’ joint venture — BetMGM – recently announced its collaboration with the Washington Nationals. Following the partnership, BetMGM is the only mobile betting app available at the Nationals Park region. The multi-year collaboration between BetMGM and Washington Nationals comprises of a retail BetMGM Sportsbook connected to Nationals Park, which is expected to open in the latter part of 2021. However, regulatory frameworks in this regard are still underway.
Per the agreement, BetMGM will be accessible on both iOS and Android in Washington, D.C., going forward. BetMGM will provide a distinct opportunity to the Nationals fans to improve their game day experiences. Although the app can be accessed across the district, users need to be within a two-block radius of Nationals Park.
With respect to this, Adam Greenblatt, CEO of BetMGM, said, “Launching in Washington, D.C. at Nationals Park sets the stage for our plans to expand BetMGM within the region, as we've already seen great success in Virginia.” He further added, “The Washington Nationals have been a fantastic partner, committed to innovating the in-stadium fan experience and we're looking forward to opening our retail sportsbook at the stadium later this year.”
Focus on BetMGM Driving Growth
BetMGM, one of the market leaders in sports betting and gaming entertainment, spearheaded the online gaming industry. Since its launch in 2018, BetMGM has done extremely well, and is now operating in 12 states. Notably, the company continues to gain market share.
During the first quarter of 2021, BetMGM reported solid results on the back of market share gains in existing markets, along with new entries such as Iowa, Michigan and Virginia. As of February 2021, BetMGM’s market share stood at 22% in its active markets. It also reported strengthening of its position in New Jersey with market share gains of more than 30%. Meanwhile, BetMGM operations contributed $163 million to net revenues during the first quarter. Markedly, the operation results are encouraging compared with total net revenues of $178 million in 2020.
MGM Resorts remains optimistic about BetMGM’s long-term growth with revenue expectations of more than $1 billion in 2022. Over the long term, BetMGM’s EBITDA margins are expected in the range of 30-35%. Also, it expects long-term U.S. market share to be between 20% and 25%.
In the course of time, BetMGM is persistently increasing its sports betting exposures. Online gaming education is remaining its prime focus.
So far this year, shares of MGM Resorts have gained 35.4% compared with the Zacks Gaming industry’s 18.4% growth.
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Zacks Rank & Key Picks
MGM Resorts carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Boyd Gaming Corporation BYD, Red Rock Resorts, Inc. RRR and Accel Entertainment, Inc. ACEL. Boyd Gaming and Red Rock sport a Zacks Rank #1 (Strong Buy), while Accel Entertainment carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Accel Entertainment’s2021 earnings are expected to surge 785.7%.
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