When investors think of MGM Resorts International (NYSE:MGM) right now, they probably think of how much the casino industry has been affected by the COVID-19 pandemic. But MGM also has a segment that has been growing throughout the pandemic, with its BetMGM online sports betting and gambling app.
A number of U.S. states have already legalized sports betting, and three more have it on the ballot in the election. Those three states include Maryland, where MGM has a regional casino presence. Investors who want to get in on the sports betting action don’t need to wait until the election is over to get good odds on MGM.
BetMGM was launched in 2018 and has been steadily expanding into more U.S. states. The app is a joint venture by MGM and GVC Holdings (LSE:GVC). BetMGM is currently live in eight states, and is expected to be added in three more by the end of the year.
In its recently announced third-quarter earnings results, GVC touted its progress, and said the app “is firmly on track to be the leading operator in the U.S. online sports-betting and iGaming markets.” GVC said that it expects its U.S. sales to be ahead of expectations, as BetMGM has approximately 17% market share across its markets.
A growing market
GVC said it believes the sports betting and online gambling markets will be worth over $20 billion