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MGM Resorts' (MGM) BetMGM Partners With Emerald Queen Casino

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MGM Resorts International’s (MGM - Free Report) BetMGM recently announced an exclusive market access partnership with the Puyallup Tribe of Indians for sport betting in Washington state. Following the receipt of regulatory approval, sports betting will be available at the Fife and Tacoma properties operated by Emerald Queen Casino.

BetMGM CEO Adam Greenblatt said, “The Puyallup Tribe and Emerald Queen Casino are ideal partners for us as they represent the same high-level of service, amenities and experiences that is built into our DNA at BetMGM.”

BetMGM continues to expand its presence. BetMGM recently collaborated with Everi Digital (online gaming division of Everi Holdings) and launched a custom-themed game — Borgata 777 Respin. This collaboration is likely to boost the company’s online gaming offerings through video slot enhancements and progressive jackpot contents.

BetMGM: Future Prospects Look Bright

During second-quarter 2021, BetMGM operations contributed $194 million to net revenues in the second quarter, up 19% sequentially. Markedly, the operation results are encouraging compared with the total net revenues of $178 million in 2020. Given the positive momentum in markets, and its unique and unparalleled online and off-line 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 projected to be 30-35%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Price Performance

Coming to the price performance, shares of MGM Resorts have appreciated 41.3% so far this year compared with the industry’s decline of 4.5%. The company has been benefiting from sports betting expansion, asset light strategy, non-gaming activities and digital initiatives. It is confident regarding prospects in Macau and continues to invest in the same. Earnings estimates for 2021 have moved up in the past 60 days, reflecting analysts’ optimism regarding the stock’s growth potential.

MGM Resorts currently carries a Zacks Rank #3 (Hold).

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