MGM Resorts International (MGM - Free Report) continues to focus on sports betting to drive growth. Roar Digital, LLC, a joint venture between MGM Resorts and GVC Holdings, has reached an agreement with National Lacrosse League (NLL). Roar Digital’s sports betting brand, BetMGM, has become the official and exclusive gaming partner of the NLL.
During NLL regular season and playoffs, BetMGM will have commercial visibility as well as other promotional opportunities. BetMGM can be accessed via desktop and mobile. Roar Digital is likely to benefit from this partnership as NLL is the premier professional lacrosse league. NLL is ranked third based on average attendance for pro indoor sports. It not only witnessed robust ticket sales growth last year but also saw a sharp increase in digital viewership.
Sports Betting: A Major Growth Driver
Last year, MGM Resorts entered into a multi-year strategic partnership with Major League Soccer (MLS). Notably, MGM Resorts became MLS’ first official gaming partner. Furthermore, Roar Digital is the official sports betting partner of MLS.
In 2018, MGM Resorts had announced a multi-year partnership with the National Basketball Association, under which the former became the official partner of NBA and WNBA. Under the partnership, MGM Resorts uses official NBA and WNBA data and branding, on a non-exclusive basis, across its land-based and digital sports betting offerings in the United States.
In an effort to strengthen its foothold in the gaming industry, MGM Resorts seems to be banking on sports betting at various locations following the legalization outside Nevada. Sports betting has been legalized in Delaware, Mississippi, New Jersey, New Mexico, West Virginia, Pennsylvania, Rhode Island, Montana, Indiana, Tennessee, Illinois and New Hampshire. Moreover, Connecticut, Kentucky, Michigan, Massachusetts, Maryland, Minnesota, Missouri, Kansas, Louisiana, Oklahoma, South Carolina, California, Oregon, Arizona and other states are likely to tread the same path in the coming months.
Shares of MGM Resorts have gained 14.7% in the past six months compared with the industry’s growth of 7.5%.
Zacks Rank & Stocks to Consider
MGM Resorts, which share space with Las Vegas Sands Corp. (LVS - Free Report) , has a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Churchill Downs Incorporated (CHDN - Free Report) and PlayAGS, Inc. (AGS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Churchill Downs and PlayAGS have an impressive long-term earnings growth rate of 20% and 12%, respectively.
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