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MGM Resorts' (MGM) Stock up as BetMGM Unveils Online Casino

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MGM Resorts International (MGM - Free Report) and GVC Holdings’ joint venture — BetMGM — announced the launch of BetMGM Casino in Pennsylvania. Following the news, shares of the company rose 2.7% during trading hours on Dec 4.

On Nov 24, BetMGM collaborated with Pittsburgh Steelers for the launch of its online sports betting product. Per the deal, BetMGM can use Steelers marks and logos in communications across marketing, product, social media and digital properties.

Notably, the announcement paves the path for the state-wide launch of BetMGM's sports betting offerings, subject to regulatory approvals.

The online casino in the Keystone State offers easy to play, state-of-the-art mobile casino games of more than 140 different types. Notably, this includes an expansive array of slot tournaments, progressive jackpots (exclusive to Pennsylvania), Blackjack, roulette, video poker, and other casino and slot games. Available at both iOS and Android platforms, the online casino can also be accessible through a desktop.

Meanwhile, BetMGM has integrated its services with MGM Resorts — M life Rewards program, thereby boosting the entertainment quotient for customers. It also allows redemption of gameplay services at iconic MGM Resorts properties such as Bellagio and MGM Grand in Las Vegas, Borgata in New Jersey, and MGM National Harbor in Maryland.

In this regard, Adam Greenblatt, CEO of BetMGM, stated, "We're thrilled to bring BetMGM's online casino offering to Pennsylvania. Alongside MGM Resorts (MGM - Free Report) and its M life Rewards program, BetMGM will provide players with a truly unique entertainment experience."

Increased BetMGM Focus Bodes Well

MGM Resorts continues to focus on sports betting expansion. Case in point, MGM Resorts and GVC Holdings announced a second round of investment in BetMGM. Together, the parties reached the total investment to $450 million. In the first round, 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.

In the past six months, shares of MGM Resorts have gained 29.3% compared with the industry’s rise of 20.5%.

Zacks Rank & Key Picks

MGM Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Zacks Consumer Discretionary sector are
YETI Holdings, Inc. (YETI - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and Monarch Casino & Resort, Inc. (MCRI - Free Report) . YETI Holdings sports a Zacks Rank #1, while Boyd Gaming and Monarch Casino carry a Zacks Rank #2 (Buy).

YETI Holdings has a three-five year earnings per share growth rate of 18.3%.

Earnings for Boyd Gaming and Monarch Casino are expected to surge 1,230.2% and 179.3%, respectively, in 2021.

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