It takes little more than a few commercial breaks to realize the scope of the modern sports betting landscape. More and more states are legalizing wagering on sports while sportsbooks are advertising consistently, leading to numerous broken records for sports betting handles. As you’d imagine, the stock market has taken notice, and money is being invested in companies with an interest in sports betting. Let’s take a look at how one sportsbook in particular is gaining attention from investors.
Retail Investors Are Loving MGM Stock
If MGM Resorts International wanted to attract attention from retail investors in the stock market, the company is doing its job. UBS recently noted the excellent retail signal score from MGM, which was 96%. Considering only 16 different stocks are currently between 96-100% according to UBS, this is high praise from the stock market. Additionally, MGM is the only gaming-related company on that list.
The attention from retail investors is notable. Due to factors such as a young demographic of retail investment, as well as the ease provided by tech advancements over time, retail investors hold much more power than they used to. While MGM didn’t get the kind of boost as notable stocks such as GameStop and AMC Theatres have seen from retail investments, the sustainability of the business makes for a positive future for the casino-focused company.
Some Background on BetMGM Sportsbook
In March of 2020, BetMGM Sportsbook officially launched. The sportsbook, which was released due to a partnership with Roar Digital LLC (the joint venture between MGM Resorts and GVC Holdings), first appeared in Nevada and has since spread to states such as Iowa, Michigan, Arizona, and Colorado. The platform has been finding an audience amongst a packed group of different sportsbooks, partnering with brand ambassadors like entertainer Jamie Foxx and former athletes such as Marshawn Lynch and Kevin Garnett.
How Does BetMGM Stand Up to the Competition?
BetMGM has been definitely successful since its launch, gaining plenty of fans thanks to consistent promos and an aggressive advertising strategy. However, it has no shortage of competition, with DraftKings, FanDuel, Caesars, and more platforms fighting for the top spot. A September analysis of the sports betting market helped to shed some light on where the bettors are going for their online sports bets. When taking a look at the three top states for online sports betting in the U.S., (Michigan, Pennsylvania, and New Jersey), one analyst claimed that FanDuel was the major leader in the market with a 40% share.
Not too far behind is DraftKings, which controls 29% of the market and has shown growth. The analyst found that BetMGM is next on the list with a 14% hold, although did note the 30% market share of iGaming for MGM. In the back of the race were Barstool Sportsbook with 5.5% and Caesars with 1.5%. Although BetMGM is just one aspect of the entire company, the success of the platform and continued popularity of online sports betting likely played a part in MGM Resorts’ attention from retail investors.