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MGM Resorts International (MGM - Free Report) and Entain Plc’s joint venture BetMGM is on expansion spree. Recently, BetMGM announced that it has become an official sports betting partner of Nashville Predators.
The partnership also includes BetMGM-branded signage throughout Bridgestone Arena. Moreover, it plans to open a branded BetMGM restaurant and bar on the arena's suite level.
Nashville Predators’ President & CEO Sean Henry said, “We are always looking for ways to enhance SMASHVILLE and bring a better experience to the best fans in sports. Integrating an industry leader like BetMGM into our building is a tremendous opportunity and we hope to continue to grow our partnership in the years to come.”
BetMGM Expansion Efforts Drive Growth
BetMGM expansion efforts continue to drive growth. Net revenues from BetMGM in the first half of 2022 came in at $608 million, reflecting a 70% increase from 2021 levels. The company continues to gain market share as well. In second-quarter 2022, BetMGM rolled out its offerings in Ontario. As of May 2022, it achieved a market share of 21% in the U.S. sports betting and the iGaming space.
BetMGM has a long-term growth target of 20-25% in U.S. sports betting and iGaming. Currently, the company is on track to achieve its target. Given the positive momentum in markets coupled with its unique and unparalleled online and offline offerings, the company remains optimistic about long-term growth with revenue expectations of more than $1.3 billion in 2022.
The company expects to achieve positive EBITDA in 2023. To drive growth, the company continues to invest in additional markets.
Meanwhile, MGM Resorts’ BetMGM announced partnerships with Gila River Hotels & Casinos and the Arizona Cardinals to expand its retail and online sports betting.
Image Source: Zacks Investment Research
Price Performance
Shares of MGM Resorts have gained 23.7% in the past six months compared with the industry’s increase of 13.1%. The company is benefiting from pent-up consumer demand, high domestic casino spends and robust demand for sports betting. Also, it is benefiting from increased visitation in the Las Vegas market. Sports betting and iGaming continue to be major growth drivers for the company.
Zacks Rank & Key Picks
The company currently has a Zacks Rank #5 (Strong Sell).
Monarch Casino sports a Zacks Rank #1 (Strong Buy). MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 20.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MCRI’s 2022 sales and earnings per share (EPS) indicates growth of 21.1% and 29.2%, respectively, from the year-ago period’s reported levels.
Hilton Grand Vacations currently sports a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 3.7%, on average. The stock has declined 6.2% in the past year.
The Zacks Consensus Estimate for HGV’s 2022 sales and EPS indicates a rise of 63.8% and 60.9%, respectively, from the year-ago period’s levels.
Hyatt currently has a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 20.9% in the past year.
The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates a surge of 91.9% and 121%, respectively, from the year-ago period’s reported levels.
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MGM Resorts' (MGM) BetMGM Partners Nashville Predators
MGM Resorts International (MGM - Free Report) and Entain Plc’s joint venture BetMGM is on expansion spree. Recently, BetMGM announced that it has become an official sports betting partner of Nashville Predators.
The partnership also includes BetMGM-branded signage throughout Bridgestone Arena. Moreover, it plans to open a branded BetMGM restaurant and bar on the arena's suite level.
Nashville Predators’ President & CEO Sean Henry said, “We are always looking for ways to enhance SMASHVILLE and bring a better experience to the best fans in sports. Integrating an industry leader like BetMGM into our building is a tremendous opportunity and we hope to continue to grow our partnership in the years to come.”
BetMGM Expansion Efforts Drive Growth
BetMGM expansion efforts continue to drive growth. Net revenues from BetMGM in the first half of 2022 came in at $608 million, reflecting a 70% increase from 2021 levels. The company continues to gain market share as well. In second-quarter 2022, BetMGM rolled out its offerings in Ontario. As of May 2022, it achieved a market share of 21% in the U.S. sports betting and the iGaming space.
BetMGM has a long-term growth target of 20-25% in U.S. sports betting and iGaming. Currently, the company is on track to achieve its target. Given the positive momentum in markets coupled with its unique and unparalleled online and offline offerings, the company remains optimistic about long-term growth with revenue expectations of more than $1.3 billion in 2022.
The company expects to achieve positive EBITDA in 2023. To drive growth, the company continues to invest in additional markets.
Meanwhile, MGM Resorts’ BetMGM announced partnerships with Gila River Hotels & Casinos and the Arizona Cardinals to expand its retail and online sports betting.
Image Source: Zacks Investment Research
Price Performance
Shares of MGM Resorts have gained 23.7% in the past six months compared with the industry’s increase of 13.1%. The company is benefiting from pent-up consumer demand, high domestic casino spends and robust demand for sports betting. Also, it is benefiting from increased visitation in the Las Vegas market. Sports betting and iGaming continue to be major growth drivers for the company.
Zacks Rank & Key Picks
The company currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. (MCRI - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Hyatt Hotels Corporation (H - Free Report) .
Monarch Casino sports a Zacks Rank #1 (Strong Buy). MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 20.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MCRI’s 2022 sales and earnings per share (EPS) indicates growth of 21.1% and 29.2%, respectively, from the year-ago period’s reported levels.
Hilton Grand Vacations currently sports a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 3.7%, on average. The stock has declined 6.2% in the past year.
The Zacks Consensus Estimate for HGV’s 2022 sales and EPS indicates a rise of 63.8% and 60.9%, respectively, from the year-ago period’s levels.
Hyatt currently has a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 20.9% in the past year.
The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates a surge of 91.9% and 121%, respectively, from the year-ago period’s reported levels.