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MGM Resorts' (MGM) BetMGM, NHL Extend Multi-Year Partnership

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MGM Resorts International’s (MGM - Free Report) sports betting and iGaming operator, BetMGM, and National Hockey League (“NHL”) announced the extension of a North American multi-year partnership.

As part of the collaboration, BetMGM will continue as an official sports betting and gaming partner and create specialized VIP fan experiences. Also, it will utilize NHL picturing to design teams as well as league-branded casino games.

BetMGM will be featured on nationally televised broadcasts during which it will encounter significant branding in the United States. The branding will comprise its camera-visible signage during NHL’s games, highlights through Digitally Enhanced Dasherboards, the League's advanced approach to dynamic dasherboard advertising and virtual slot in-ice ads.

The company has optimistic views on the partnership extension as it believes this will enhance BetMGM’s product portfolio and enable it to offer its customers top-tier live experiences and new content.

Online Gaming Spurs Growth

Sports betting and iGaming serve as the primary growth driver of MGM Resorts. The company’s continuous focus on sports betting expansion has determined the increase in market share gains by BetMGM.

MGM’s continuous investment in additional markets to drive growth bodes well. MGM Resorts and Entain anticipate investing approximately $150 million in 2023. Meanwhile, MGM Resorts’ BetMGM announced that it has partnered with Gila River Hotels & Casinos and the Arizona Cardinals to expand its retail and online sports betting.

Given the positive market momentum coupled with its unique and unparalleled online and offline offerings, MGM remains well on track to achieve the long-term growth of BetMGM with revenue expectations of $1.8-$2 billion in 2023. The company is confident about the improved design and functionality of the BetMGM app launch (of a single wallet) and omnichannel growth prospects. BetMGM has a long-term growth target of 20% to 25% in U.S. sports betting and iGaming.

Zacks Investment Research
Image Source: Zacks Investment Research

Owing to these tailwinds, shares of MGM increased 4.8% in the past six months against the Zacks Gaming industry’s 2.2% decline.

Zacks Rank & Key Picks

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

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.

Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has surged 139.1% in the past year. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests rises of 57.7% and 187.9%, respectively, from the year-ago period’s levels.

Live Nation Entertainment, Inc. (LYV - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 37.5%, on average. The stock has gained 34.2% in the past year.

The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a 29.5% and 132.8% rise, respectively, from the year-ago period’s levels.

Grand Canyon Education, Inc. (LOPE - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 9.9%, on average. The stock has increased 29.2% in the past year.

The Zacks Consensus Estimate for LOPE’s 2023 sales and EPS suggests an improvement of 7.1% and 17.1%, respectively, from the year-ago period’s levels.

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