US sports betting brand, BetMGM has started to focus on its growth strategy for this year, after it committed to investing $450 million into brand and asset development over the next few months, as well as entry into new markets.
Already, the brand is live in 19 states for sports betting – four of which offer online casino and one of which is the newly regulated state of New York, where there is a huge opportunity to take a significant share of the mobile sports betting market.
A joint-venture between MGM Resorts International and UK-owned powerhouse Entain (which also owns British brands Coral and Ladbrokes), the two entities have committed investment to turning BetMGM into the leading US sportsbook.
Significant KP forecast for 2022
Currently, BetMGM competes with a number of sportsbooks in the US market, including DraftKings (who had a $22 billion offer for Entain turned down last year), Flutter Entertainment-owned FanDuel, Caesars Entertainment who bought William Hill’s US assets, Australian firm PointsBet, in addition to a number of UK brands that have started to gain entry.
This, though, still has not stopped it from drawing up estimates of $1.3 billion in net revenue for 2022, as the US sports betting and online gambling market grows ever bigger. With Florida (the third-highest populated state in the US) having recently approved sports betting and vote being put to residents of California later this year, these are two potentially huge markets for BetMGM to target.
However, there is still plenty of promise in the states where sports betting is currently allowed, with Michigan (which launched online gambling in January 2021) breaking monthly revenue records. Of course, there are plenty of other states that offer great targeting opportunities, including Colorado and Illinois – the latter only launching towards the end of last year.
Partnerships in the Pipeline?
What we could see, as is becoming almost normal in the US online gambling market, is more partnerships taking shape in a bid to increase brand presence.
Deals with sports franchises could be one way to help the brand gain more customers – with a significant share of the market being big followers of the NFL, NHL, NBA, MLB and even the MLS.
As a result, it is certainly a case of ‘watch this space’ for BetMGM over the next 12 months and it will be interesting to see how they can innovate to continue to compete in what is becoming arguably the biggest market in the world.
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