MGM Ready for Online Gambling Battle With DraftKings and FanDuel
September 29, 2020
MGM is one of the most prominent brand names in the world gambling industry. For decades, MGM has been a major provider of brick and mortar gambling in the U.S. It's no small thing that the company has also become a major gambling provider on the international gambling stage with land-based casinos in Europe and a major property in Macau.
Unfortunately, the year 2030 has not been kind to gambling conglomerates like Caesar's and MGM. Due to lockdowns brought on by the COVID19, brick and mortar casinos are bleeding money with no meaningful revenue coming in the door. While some casinos have been forced to the sidelines to wait for a change in the current environment, MGM has decided to take another approach. The company has decided to double down on its push to become a major provider in the online gambling space.
To date, DraftKings and FanDuel have been able to maintain a stranglehold on the U.S. sports betting market with a presence in at least a dozen states. Both companies are also in the process of opening up online casino gambling options in conjunction with their sports betting platforms. Meanwhile, MGM has been participating in the online sports betting market as an outliner with its MGMBets software platform.
What leaders at MGM have learned during the COVID19 pandemic is the future of gambling in the U.S. is going to include a major focus on online gambling. With revenue numbers starting to pour in from online sports gambling providers in states like Nevada, New Jersey, Indiana, and Pennsylvania, the evidence is in. The numbers are going to be huge when all sports leagues are operating at capacity.
In a recent interview with Yahoo Finance’s “On The Move” publication, George Kliavkoff, MGM Resorts’ president of entertainment and sports, commented on what the MGM organization experienced during the pandemic lockdown. He stated:
“What you saw was when at the height of the pandemic, all of our resort casinos were closed. The only place that the company was making money was on sports betting and gaming online casino and poker.”
This is a common theme within the gambling industry in both Europe and the U.S. As for how MGM plans to compete in a growing online gambling market, it looks like they plan to take advantage of the fact they own brick and mortar properties. All indications they want to promote its online options by integrating them with the company's land-based gambling experience.
A promo might sound like this: Sign up for an online gambling account and receive two free nights at a MGM property of you choice. Indded, it looks like MGM is ready to double down on its involvement in online gambling.