In an effort to expand in the online betting space,
MGM Resorts International’s ( MGM Quick Quote MGM - Free Report) BetMGM announced a partnership with NYRA Bets, LLC, the official online wagering platform of the New York Racing Association. NYRA Bets is also a major provider of horse racing content in the United States. Following the partnership, BetMGM customers can watch as well as wager on premier Thoroughbred, Standardbred and Quarter Horse races at more than 200 tracks globally. NYRA Bets, which continues to expand its presence, is currently available in 30 states. BetMGM CEO Adam Greenblatt said, “We've found a great partner in NYRA Bets and look forward to working with them to create a thrilling, interactive experience for horse racing fans on BetMGM.” BetMGM customers can watch daily horse racing content, live streaming video and race replays. Its customers can also bet on marquee events in the United States, such as the Kentucky Derby, Preakness and Belmont Stakes, and also the Breeders' Cup. International events like the Royal Ascot meet, Melbourne Cup, Saudi Cup and the Dubai World Cup can also be wagered. Shares of MGM Resorts have gained 36.1% year to date compared with the industry’s growth of 18.6%.
Image Source: Zacks Investment Research BetMGM – Major Growth Driver
Ever since its launch in 2018, the company has done extremely well and is now operating in 12 states. Notably, BetMGM continues to gain market share.
During the first quarter of 2021, BetMGM reported solid results on the back of share gains in existing markets along with new entries such as Iowa, Michigan and Virginia. As of February 2021, BetMGM’s market share stood at 22% in its active markets. It also reported a strengthening of position in New Jersey with market share gains of more than 30%. Meanwhile, BetMGM’s operations contributed $163 million to net revenues during the first quarter. Markedly, the BetMGM’s results are encouraging compared with the total net revenues of $178 million in 2020. Given the positive momentum in markets coupled with its unique and unparalleled online and offline offerings, the company remains optimistic about its long-term growth with revenue expectations of more than $1 billion in 2022. Over the long term, BetMGM’s EBITDA margins are expected in the range of 30-35%. Also, it expects long-term U.S. market share between 20% and 25%. MGM Resorts, which shares space with Wynn Resorts, Limited ( WYNN Quick Quote WYNN - Free Report) , Las Vegas Sands Corp. ( LVS Quick Quote LVS - Free Report) and Boyd Gaming Corporation ( BYD Quick Quote 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 Zacks' Top Picks to Cash in on Artificial Intelligence
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