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MGM Resorts' (MGM) BetMGM Reaches Agreement With Audacy

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MGM Resorts International’s (MGM - Free Report) BetMGM reached a multi-year sports betting deal with Audacy, previously trading as Entercom Communications Corp. (ETM). Per the partnership, BetMGM became the preferred sports betting partner of Audacy across all sports broadcast stations, digital platforms, BetQL app as well as BetQL Audio Network. Following the news, the company’s shares increased 2.8% on Mar 30. Notably, shares of the company have surged 75.1% in the past six months compared with the industry’s rally of 35%.

Following the partnership, millions of sports fans across the United States who tune in daily to Audacy's portfolio of broadcast stations, podcasts as well as shows can access to BetMGM's sports betting content. Moreover, BetMGM will get preferred access to Audacy talent.

Matt Prevost, BetMGM's chief revenue officer, stated, “In Audacy, we've found a long-term strategic partner that shares our goals, enabling us to further amplify BetMGM's reach to sports fans through the most trusted audio personalities and sports betting data and analytics platform in their respective markets today.”

 

BetMGM Continues to Expand its Presence

Ever since its launch in 2018, BetMGM has done extremely well and is available in 10 states. BetMGM is likely to operate in 20 states by 2021 and will have access of nearly 40% of the United Sates. Notably, BetMGM continues to gain market share. In fourth-quarter 2020, BetMGM market share was 17% in its retail and online markets. BetMGM registered 138,000 new customers between December and January. BetMGM delivered robust results in two of its newest markets, Colorado and Tennessee. In fourth-quarter 2020, BetMGM market share in Colorado and Tennessee were 31% and 34%, respectively. Moreover, the company and its new partner, Entain, anticipate new revenues related with BetMGM to increase well over 100% in 2021.

According to the American Gaming Association, about $150 billion is wagered illegally on sports through the likes of bookies and offshore sites every year. Data Bridge Market Research projects global sports betting market to witness a CAGR of 9.99% in the forecast period of 2020 to 2027. Growth in the gambling market is likely to be driven by increase in smartphone adoption and improving Internet infrastructure globally.

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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