Analysis

MGM launches in Penn – but casino-only for now

BetMGM has finally launched in Pennsylvania but with casino-only as it awaits regulatory approval for sports-betting.

BetMGM is now available in Pennsylvania after the company launched its online casino proposition last Friday.

However, BetMGM’s sports-betting offering will have to wait for a few more weeks yet as the company continues to seek the necessary regulatory approvals.

BetMGM CEO Adam Greenblatt said the offering of over 140 games was the “widest range of content currently available” in Pennsylvania.

“Alongside MGM Resorts and its M life Rewards program, BetMGM will provide players with a truly unique entertainment experience,” he added.

Steel town

Ahead of the online casino launch, BetMGM signed a partnership deal with the Pittsburgh Steelers.

That deal will truly kick-in when the sports-betting app is launched. BetMGM will be the franchise’s official sports-betting partner.

BetMGM will be entering an already competitive online gaming market where revenues hit nearly $60m in October.

This put the month ahead of the previous record-breaking month in September when revenues reached $57m.

Competitive states

In sports-betting the market is headed by FanDuel and DraftKings which are both familiar competitors to BetMGM in other states.

According to the sportsbook weightings in the Wedge Index of gaming friendliness, BetMGM is a top tier brand. As such it will add four points to the states tally when it launches.

Pennsylvania lies behind only New Jersey on the index with a current tally of 86 points.

BetMGM also recently launched in Tennessee.

BetMGM is a joint-venture partnership between MGM Resorts International and GVC (soon to become Entain).

Both parent companies have stated their aim is to ensure BetMGM is a top player in whichever markets it enters.

GVC reiterated in its October trading statement that estimates BetMGM has circa 17% market share in the states in which it currently operates.

GVC estimated at the time that the US would contribute between $150m-$160m in revenues to the company this year.

Analysts at Berenberg noted at the time this was ahead of expectations.

The team at Deutsche Bank said in November that BetMGM was “clearly expanding rapidly”. They and noted that both GVC and MGM had also demonstrated “ambitious expansion plans.”

Scott Longley

Scott Longley has been a journalist since the early noughties covering personal finance, sport and the gambling industry. He has worked for a number of publications including Investor's Week, Bloomberg Money, Football First, EGR and GamblingCompliance.com. He now writes for online and print titles across a wide range of sectors.

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