MGM Resorts International’s MGM iGaming and online sports betting brand, BetMGM, has just rolled out its online mobile sports betting app in Kentucky. This move promises Kentucky sports enthusiasts an enhanced gameday experience with a user-friendly platform offering customizable pre-game, in-play, futures and parlay wagers.
The recent app updates introduce advanced functionality including same-game parlays and weekly free-to-play contests. This ensures a seamless betting experience for users traveling across states where online sports betting is available, such as Illinois, Indiana, Ohio, West Virginia, Virginia and Tennessee.
A notable feature is an integration with MGM Rewards, enabling BetMGM users to redeem gameplay for exclusive experiences at renowned MGM Resorts properties nationwide. From Bellagio and MGM Grand in Las Vegas to Beau Rivage in Mississippi and Borgata in New Jersey, users can indulge in world-class entertainment.
Looking ahead, BetMGM is set to open a 5,200-square-foot retail sportsbook at Sandy's Racing & Gaming in Ashland this fall. This collaboration with Revolutionary Racing Kentucky is part of a $75 million gaming and entertainment facility, featuring Kentucky's first quarter horse racetrack and equestrian center on 182 acres adjacent to Sandy's.
BetMGM's foray into mobile sports betting in Kentucky positions it for substantial growth along with catering to the fervent sports culture. With strategic partnerships, a user-centric app and a commitment to responsible gambling, BetMGM is set to revolutionize the sports betting landscape in Bluegrass State.
Shares of the company have gained 22.2% in the past year, compared with the industry’s rally of 19.6%.
Image Source: Zacks Investment Research
Online Gaming – Growth Driver of MGM
Sports betting and iGaming continues to be a major growth driver of MGM Resorts. Its continuous focus on sports betting expansion has determined the increase in market share gains by BetMGM.
In August 2023, BetMGM expanded its presence in the U.K. with new thrilling product features including large-scale and frequent jackpots, loyalty rewards, distinct and compelling sports promotions and exclusive slots. The new international product is available on desktop and mobile websites, with mobile applications scheduled before a national media launch in mid-September 2023. MGM Resorts is optimistic about the U.K. launch of BetMGM brand as it believes this to be a step closer to expand the brand in international markets.
In the first half of 2023, BetMGM generated $944 million in net revenues from operations, marking a 55% improvement compared with year-ago levels.
Given the positive market momentum coupled with its unique and unparalleled online and offline offerings, the company remains well on track to achieve its long-term growth with revenue expectations of $1.8-$2 billion in 2023. MGM expects to achieve positive EBITDA in the second half of 2023. Management is confident about improved design and functionality of BetMGM app launch (of a single wallet) and omnichannel growth prospects.
Zacks Rank & Key Picks
MGM currently has a Zacks Rank #3 (Hold).
Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have increased 2.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates rises of 21% and 57.8%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. HLT currently carries a Zacks Rank #2 (Buy). HLT has a trailing four-quarter earnings surprise of 12.5% on average. Shares of HLT have gained 19.1% in the past year.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS suggests jumps of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited OSW presently carries a Zacks Rank #2. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have improved 22.7% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS implies growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report