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MGM Resorts (MGM) BetMGM Launches Sports Betting in Washington

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MGM Resorts International’s (MGM - Free Report) BetMGM continues to focus on sports-betting expansion to drive growth. In sync with the endeavor, BetMGM and Emerald Queen Casino (EQC) announced that sports betting is now live in Washington at the BetMGM Sportsbook EQC.

The BetMGM Sportsbook at EQC have a 500-square-foot video wall, more than a dozen 86" high-definition televisions, 70 DreamSeat leather armchairs, six ticket windows and 30 betting kiosks.

BetMGM CEO Adam Greenblatt, stated, “We're thrilled to expand BetMGM's presence in Washington, a significant market filled with some of the country's most passionate sports fans. "Together with the Puyallup Tribe of Indians and our partners at Emerald Queen Casino, we're proud to welcome guests to the state's premier sportsbook.”

On Mar 25, 2020, sports betting became legal on tribal land in the State of Washington. The company stated that it continues to expand its footprint to two new states. Recently, BetMGM announced the launch of the BetMGM Horse Racing mobile app in Florida and Louisiana.

Zacks Investment ResearchImage Source: Zacks Investment Research

Shares of MGM Resorts have appreciated 42.3% so far this year against the industry’s decline of 8.1%. MGM Resorts carries a Zacks Rank #3 (Hold).

BetMGM: A Major Growth Driver

BetMGM is a major casino operator in New Jersey with a 30% gross gaming revenue (GGR) market share in October. The company has an estimated 32% national GGR market share across its live markets: New Jersey, West Virginia, Pennsylvania and Michigan.

BetMGM operations contributed $227 million to net revenues in the third quarter, up 17% sequentially. The operation results are encouraging compared with total net revenues of $178 million in 2020. In the third quarter, 16% of BetMGM's fresh players were from MGM and 42% of MGM M life sign-ups came from BetMGM. Considering the positive momentum in markets and its unique and unparalleled online and offline offerings, the company is optimistic about long-term growth with revenue expectations of more than $1 billion in 2022. Over the long term, BetMGM’s EBITDA margins are expected to be 30-35%. MGM Resorts’ BetMGM recently partnered with Gila River Hotels & Casinos and the Arizona Cardinals to expand its retail and online sports betting.

Key Picks

Some better-ranked stocks in the Consumer Discretionary sector include Churchill Downs Incorporated (CHDN - Free Report) , Bluegreen Vacations Holding Corporation (BVH - Free Report) and Camping World Holdings, Inc. (CWH - Free Report) .

Churchill Downs sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 13.7%, on average. Shares of the company have soared 13.5% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Churchill Downs’ current financial year sales and earnings per share (EPS) suggests growth of 51.4% and 684.3%, respectively, from the year-ago period’s levels.

Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 35.5% in the past three months.

The Zacks Consensus Estimate for Bluegreen Vacations current financial-year sales and EPS indicates growth of 27.5% and 199.3%, respectively, from the year-ago period’s levels.

Camping World carries a Zacks Rank #2 (Buy). The company has been benefiting from the launch of a new peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.

Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 5.4% in the past three months. The Zacks Consensus Estimate for CWH’s current financial year sales and EPS suggests growth of 25.9% and 77.6%, respectively, from the year-ago period’s levels.