MGM Resorts' BetMGM Expands Reach in Washington DC

MGM Resorts International's MGM leading sports betting and the iGaming brand, BetMGM, expanded its mobile sports betting service throughout Washington, D.C. This move allows sports fans across the district to use the BetMGM app and earn rewards from MGM Resorts and Marriott Bonvoy.

The strategic expansion follows the D.C. Council's approval of its fiscal 2025 budget, which includes opening the digital sports betting market. MGM retains exclusivity around Nationals Park, operating the BetMGM Sportsbook through a partnership with the Washington Nationals. This allows fans to bet on their favorite teams across the District using BetMGM's award-winning mobile app.

BetMGM continues to prioritize responsible gambling education as it expands into new markets. The company offers resources like GameSense, developed and licensed by the British Columbia Lottery Corporation and integrated into BetMGM's mobile and desktop platforms. This program provides customers with familiar tools for responsible gaming, complementing BetMGM's existing safety measures to ensure an enjoyable and secure digital gaming experience.

Focus on Sports Betting

MGM Resorts continues to focus on sports betting expansion. Sports betting and iGaming continue to be a major growth driver following the legalization of sports betting outside Nevada. The company emphasizes the approval and subsequent migration of the Entain platform in Nevada, setting the stage for the integration of a single account and wallet in Nevada during late spring 2024. The company is confident about the improved design and functionality of the BetMGM app launch (of a single wallet) and omnichannel growth prospects. 

BetMGM announced that it has partnered with Gila River Hotels & Casinos and the Arizona Cardinals in an effort to expand its retail and online sports betting. The company started a collaboration with Orix to build a world-class integrated resort in Japan. BetMGM has a long-term growth target of 20% to 25% in U.S. sports betting and iGaming. Currently, the company is on track to achieve its target.

Price Performance

Image Source: Zacks Investment Research

Shares of this owner and operator of casino resorts through wholly-owned subsidiaries have gained 7.4% in the past six months compared with the Zacks Gaming industry's 15.9% growth. Although the company's shares have underperformed its industry, its ongoing focus on sports betting and iGaming along with international expansion, asset-light strategy, and non-gaming activities are likely to foster its growth in the upcoming period. The Zacks Consensus Estimate for 2025 earnings per share has increased to $3.19 from $3.13 in the past 30 days.

Zacks Rank & Key Picks

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

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