BetMGM Benefits From Further Investments
MGM Resorts International and GVC Holdings have reportedly invested a further $250 million in ROAR Digital, which company trades as the US-focused BetMGM sportsbook and online casino. MGM and GVC originally pushed $200 million in investment capital into the digital offering shortly after sports betting was legalised in the US in 2018. And now that even more money has been invested, BetMGM has a cool $370 million in working capital at its disposal.
Even though BetMGM only launched as recently as two years ago, it expects to be actively operational and doing business in at least 11 US states by the time the current year has drawn to a close. The brand is perfectly positioned to succeed because not only is it able to bargain on significant financial backing and monetary support, but also on the technology developed and owned by GVC as well as the brand-power associated with the MGM name.
What The Future Holds
And according to ROAR Digital chief executive officer Adam Greenblatt, making the most of both brands by creating a combination of the two had been the goal right from the start. By combining the resources and brand-power of two already prominent household names, BetMGM could be turned into a massive iGaming and sports betting behemoth in the United States.
Greenblatt also elaborated some regarding what markets can expect of the combined brand in future. With tech foundations now established and a high-performance human resources asset firmly in place, Greenblatt says he expects BetMGM to have reached a position of $130 million in net revenue by end of the current financial year.
The performance being projected at present obviously pertains mainly to the brand’s online casino offering, as since most major sports events have been cancelled, and sports leagues only now being in a position to make some semblance of a return, sports betting revenue is somewhat of a non-event in terms of the mentioned financial period.
More States, Higher Advantage
As for the strategy currently followed by the BetMGM brand, four key areas have been identified as considered effective at building a competitive advantage over the brand’s market rivals. First and foremost is an intense focus on expansion and broad-based market access. Establishing a presence in only 19 US states, will grant the brand access to at least half of the US population. And since the brand is already present and live in seven states, and with four more states planned to follow suit by the end of the year, it won’t be too long before the brand has reached its goals.