MGM Resorts CEO Hints at New iGaming Marketing Strategy

The revenue numbers for sports betting and iGaming are on the rise in the U.S. online gambling market. This is putting a lot of pressure on operators to find new and better ways to compete for new business and keep existing business. Still, there are significant issues facing the online gambling market's major players like Caesars, DraftKings, and BetMGM.

At the recent J.P. Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum, which was held in Las Vegas on March 13, MGM Resorts CEO Bill Hornbuckle was magnanimous enough to admit that the company had recently made a multi-million dollar advertisng mistake. According to him, it was cause enough to prompt the company to reassess and start diverting more of the company's marketing resources toward improving customer experience. Note: MGM Resorts owns 50% of the BetMGM online gambling brand.

Hornbuckle's Focus on Digital Business in 2025

With costs or expenses rising due to inflation and concerns about a recession lingering, Hornbuckle has been forced to pare back the operator's staffing in New Jersey. It's reflective of what is transpiring in many other states in which BetMGM holds online gambling licensing.

What he has decided is best for the organization is to put less emphasis on marketing promos and redirect those funds to improving customer experience. Areas of mention include enhancing omnichannel play and consolidating the payment process into a single-wallet approach.

Navigating the Political Environment

Hornbuckle feels now is the time to act as the political environment for online gambling operators gets muddled. He seems to be referring to how difficult it is becoming to draw new players when the competition is so robust.

One of the things that is drawing concern is the raising of taxes. As the online gambling market matures, state legislatures have learned more about the significance of pulling in tax revenue from sports betting and iGaming operators. In some states, regulators are looking to raise tax rates by as much as 100%, trying to cover budget shortfalls in the process.

Operators are also feeling pressure as online gambling continues to get negative press due to concerns over the proliferation of gambling addiction. It's forcing them to curtail promotional advertising in favor of putting more resources into responsible gambling initiatives. The problem with cutting promos is that it gives operators who choose not to cut promos a huge advantage from a marketing perspective. The feeling among management at BetMGM is that improvement in customer satisfaction might be enough to compensate for the loss of "gambling credits."

Hornbuckle believes the best path for his company is to focus on innovating ways to create a better and more satisfying online gambling experience with giveaways. The trick is going to be putting forth marketing programs that inform prospective customers about the advantages of better access as opposed to more perks.

Only time will tell if Hornbuckle is correct. If he is, online gamblers can expect similar changes to take place among other top online gambling operators.