MGM Resorts International (MGM - Free Report) and GVC Holdings’ joint venture — BetMGM — has become the official sports betting partner of Las Vegas Raiders. Notably, the collaboration enhances the multi-year partnership between MGM Resorts and Raiders.
Per the agreement, BetMGM will provide educational information about the BetMGM app to Raiders fans in Nevada. Sports lovers in Nevada need to register on the BetMGM app, which is available on iOS and Android, by visiting any MGM Resorts Sports Book in Las Vegas.
MGM Resorts is not only the official sports betting partner of Raiders but also a founding partner of Allegiant Stadium, with prominent brand presence throughout the stadium.
MGM Resorts CEO and president, Bill Hornbuckle stated, "All of us at MGM Resorts are proud to welcome the Raiders and the NFL to Las Vegas. We look forward to providing Raiders fans a world-class sports betting and entertainment experience, both in our BetMGM Sportsbooks and digitally, through the BetMGM mobile app."
Increased Focus on BetMGM Bodes Well
MGM Resorts continues to focus on sports betting expansion. Recently, BetMGM and GVC Holdings announced a second round of investment. This reached the total investment to $450 million. In the first round, the companies invested $200 million. Ever since its launch in 2018, the company has done well and is on track to operate across 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 an uptick 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 32.3% year to date compared with the industry’s decline of 18%.
Zacks Rank & Key Picks
MGM Resorts currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space include Churchill Downs Incorporated (CHDN - Free Report) , Monarch Casino & Resort, Inc. (MCRI - Free Report) and Penn National Gaming, Inc. (PENN - Free Report) . Churchill Downs sports a Zacks Rank #1 (Strong Buy), while Monarch Casino and Penn National carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings for Churchill Downs, Monarch Casino and Penn National are expected to surge 329.1%, 1072.7% and 114.6%, respectively, in 2021.
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