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MGM Resorts (MGM) Unveils Sport Betting in Massachusetts

MGM Resorts International’s MGM BetMGM recently announced the launch of its retail sports betting platform in Massachusetts. The news follows on the heels of the Massachusetts Gaming Commission approving sports betting licenses in the region.

Located at MGM Springfield, the BetMGM sportsbook & lounge features 45-foot LED viewing wall, four betting windows and 18 sports betting kiosks located throughout the gaming area. The company stated that the integration of BetMGM with its M life Rewards program allows customers to redeem their gameplay for experiences at MGM Resorts properties nationwide. This includes properties at MGM Springfield, Borgata in Atlantic City, and Bellagio, ARIA and MGM Grand in Las Vegas.

Regarding the launch, Chris Kelley, President & COO, Northeast Group, MGM Resorts, stated, "We're thrilled to add this new amenity, strengthening our commitment to being New England's premier entertainment and gaming destination. We are incredibly grateful for the tireless work of the State delegation to bring this historic bill to the finish line, and to the MGC for crafting the necessary regulations.”

Increased Focus on BetMGM

BetMGM ended fiscal 2022 on a strong note, establishing itself as the top player in this business in North America. It operates online sports betting and iGaming in five markets and sports betting in 20 markets globally. In fiscal 2022, net revenues from BetMGM is estimated at approximately $1.44 billion.

Considering the positive market momentum and its unique and unparalleled online and offline offerings, the company is optimistic about long-term growth, It expects revenues in the range of $1.8-$2 billion in 2023. MGM expects to achieve positive EBITDA in the second half of 2023.

To drive growth, the company continues to invest in additional markets. MGM Resorts and Entain anticipate investing approximately $150 million in 2023.

Price Performance

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Zacks Investment Research


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In the past three months, shares of MGM Resorts have gained 18% compared with the industry’s 16.9% growth. The company benefits from pent-up consumer demand, high domestic casino spending and strong international leisure trends.

Sports betting and iGaming continue to be major growth drivers for the company. The emphasis on monetizing its real estate assets and boosting its domestic cash position bode well for the company.

However, COVID-19-related woes still persist. Notwithstanding the easing of COVID-19-protective measures by authorities worldwide, certain travel restrictions, quarantine measures, testing requirements and capacity limitations remain in effect at its Macau Operations. Although casinos in Macau are now open, visitation is still below the pre-pandemic level.

Given the uncertainties revolving around the crisis, the company expects the pandemic to keep affecting operations for some time. Earnings estimates for 2023 have decreased in the past 30 days, depicting analysts’ concern regarding the stock’s growth potential.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the Zacks Consumer Discretionary sector are OneSpaWorld Holdings Limited. OSW, Manchester United plc MANU and Las Vegas Sands Corp. LVS.

OneSpaWorld currently sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 84.2%, on average. Shares of the company have increased 1.9% in the past year.  

The Zacks Consensus Estimate for OSW’s 2023 sales and earnings per share (EPS) indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s levels.

Manchester currently carries a Zacks Rank #2 (Buy). MANU has a trailing four-quarter earnings surprise of 34.4%, on average. Shares of the company have gained 63.9% in the past year.  

The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the year-ago levels.  

Las Vegas Sands currently carries a Zacks Rank #2. LVS has a long-term earnings growth rate of 4.9%. The stock has increased 32.1% in the past year.

The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 96.9% and 212.5%, respectively, from the year-ago period’s estimated levels.

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Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report

MGM Resorts International (MGM) : Free Stock Analysis Report

Manchester United Ltd. (MANU) : Free Stock Analysis Report

OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report

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