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MGM Resorts (MGM) BetMGM Boosts Online Offerings in New York

MGM Resorts International’s MGM BetMGM recently announced the launch of its online sportsbook in New York. The news surfaced after New York Gaming Commission granted permission to MGM Resorts for online wagering in the region (starting Jan 17, 2022). The announcement acts a testament to strengthen its relation as a sports betting partner of the New York Knicks, New York Rangers and Madison Square Garden Arena.

Available on IOS and Android platforms, the mobile application offers a user-friendly sports betting experience featuring customizable pre-game, in-play, futures and parlay wagers. MGM Resorts stated that the application will be made available for the desktop version as well.

The integration of BetMGM with the company’s M life Rewards program allows customers to redeem their gameplay for experiences at MGM Resorts properties nationwide. This includes properties at Empire City Casino in Yonkers, Borgata in New Jersey, MGM National Harbor in Maryland and Bellagio and MGM Grand in Las Vegas.

With respect to the launch, BetMGM CEO Adam Greenblatt, stated, "With today's monumental news, we'll now be able to fully activate our relationships with MGM Resorts' Empire City Casino and Madison Square Garden. We look forward to offering customers in New York unique experiences that they can't access on any other platform."

Focus on BetMGM Bodes Well

Ever since its launch in 2018, the company has done extremely well and is now operating in 16 markets. BetMGM continues to be a leader in the iGaming space, with its market share reaching 32% as of third-quarter 2021.

In the third quarter, 16% of BetMGM's fresh players were from MGM and 42% of MGM M life sign-ups came from BetMGM. Its 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.

Given the positive momentum in markets coupled with its unique and unparalleled online and off-line 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 in the range of 30-35%.

Price Performance

Image Source: Zacks Investment Research

Shares of MGM Resorts have appreciated 21.4% in the past six months against the industry’s decline of 12.2%. The company has been benefiting from sports-betting expansion, asset-light strategy, non-gaming activities and digital initiatives. The company is confident regarding prospects in Macau and continues to invest in the same.

However, coronavirus-related woes persist. Although casinos in Macau and Las Vegas properties are now open, the company is witnessing low visitation. Despite occupancy improving sequentially every month, it is still below pre-pandemic levels. Earnings estimates for 2022 have declined in the past seven days, depicting analysts’ concern regarding the stock’s growth potential.

Zacks Rank & Key Picks

MGM Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the Zacks Consumer Discretionary sector include Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and RCI Hospitality Holdings, Inc. RICK.

Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of Hilton Grand Vacations have increased 58.4% in the past year.

The Zacks Consensus Estimate for HGV’s 2022 sales and earnings per share (EPS) suggests growth of 27.7% and 154.4%, respectively, from the year-ago period’s levels.

Bluegreen Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of Bluegreen Vacations have surged 156.4% in the past year.

The Zacks Consensus Estimate for BVH’s 2022 sales and EPS indicates a rise of 7.6% and 0.4%, respectively, from the year-ago period’s levels.

RCI Hospitality sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have surged 123.4% in the past year.

The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 34.9% and 22.1%, respectively, from the year-ago period’s levels.

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MGM Resorts International (MGM): Free Stock Analysis Report
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