MGM Resorts International (MGM - Free Report) and GVC Holdings’ joint venture Roar Digital’s sports betting brand — BetMGM — has become the official betting partner of The Detroit Lions, a professional American football team.
Matt Prevost, BetMGM Chief Marketing Officer said “When we first opened the BetMGM Sports Lounge at MGM Grand Detroit in March, we hoped to develop deep relationships with the state's top teams. We are honored to be the first sports betting partner of the Lions and to offer their fans access to a variety of best-in-class promotions and perks only available on BetMGM.”
The partnership features fan-focused assets including presenting sponsor of Lions Bingo and Lions Perks and team broadcast programming, digital marketing assets, and in-stadium promotions and signage.
Sports betting is likely to be a major growth driver for gaming industry after its legalization outside Nevada. Sports betting has been legalized in Delaware, Mississippi, New Jersey, New Mexico, West Virginia, Pennsylvania, Rhode Island, Montana, Indiana, Tennessee, Illinois and New Hampshire. Moreover, Connecticut, Kentucky, Michigan, Massachusetts, Maryland, Minnesota, Missouri, Kansas, Louisiana, Oklahoma, South Carolina, California, Oregon, Arizona, Montana and Colorado. Other states are likely to follow suit in the coming months.
MGM Resorts continues to focus on sports betting expansion. Case in point, MGM Resorts and GVC Holdings announced second round of investment in BetMGM. Together, the parties brought the total investment to $450 million. In the first round, both the companies had invested $200 million. Ever since its launch in 2018, the company has done extremely well and is on track to operate in 11 states by the end of 2020.
BetMGM is likely to generate more than $130 million of revenues in 2020 primarily from iGaming in New Jersey on account of the COVID-19 impact. Due to increase in operations across the United States, the company anticipates sharp growth in the coming year. It also expects to generate revenues of nearly $8.5 billion by 2025.
Shares of MGM Resorts have fallen 30.6% year to date compared with the industry’s decline of 17.5%. MGM Resorts, which shares space with Wynn Resorts, Limited (WYNN - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Boyd Gaming Corporation (BYD - Free Report) , carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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