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MGM Resorts' (MGM) BetMGM Inks Deal With Pittsburgh Steelers

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MGM Resorts International (MGM - Free Report) and GVC Holdings’ joint venture Roar Digital’s sports betting brand — BetMGM — recently became the first gaming partner of The Pittsburgh Steelers. Following the news, the company’s shares gained 8.8% on Nov 24.

Per the agreement, BetMGM will be the official sports betting partner of the Pittsburgh Steelers following the launch of its online sports betting product later this year. Following the deal, BetMGM can use Steelers marks and logos in communications across marketing, product, social media and digital properties.

Matt Prevost, chief revenue officer, BetMGM said, "Steelers Nation is one of the most passionate fan bases in professional sports and we're thrilled to bring the excitement of BetMGM to Steelers fans. We're eager to launch BetMGM's gaming offering in Pennsylvania and I can't think of a better way to kick off our entry into the state than through this monumental partnership.”

BetMGM also announced that it has received license to provide online casino and sports betting in Pennsylvania. It is anticipating going live with casino gaming in the state in the coming weeks.

 

Sports Betting to Drive Growth

Sports betting is likely to be a major growth driver for gaming industry after its legalization outside Nevada. 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.
    
Shares of MGM Resorts have increased 29.4% in the past three months compared with the industry’s gain of 13.1%. 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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