BetMGM Making iGaming Strides

BetMGM is making strides to increase the number of bettors who see its online casino product, as seen by the number of mobile application downloads.

Eilers & Krejcik Gaming (EKG), citing data from Sensor Tower, reported that during the first three weeks of the 2024 NFL season, downloads of BetMGM's casino app increased in comparison to the same period last year, while downloads of similar platforms from competitors DraftKings and FanDuel decreased.

These developments are significant for BetMGM since, although losing some market share in the last few years, online casinos are still seen as one of the operator's strong points. Because they offer higher margins than online sports betting, online casinos are seen as a major long-term growth prospect for gaming enterprises.

Profits from BetMGM's iGaming Investments

BetMGM is a 50/50 joint venture between Entain Plc (OTC: GMVHY) and MGM Resorts International (NYSE: MGM). The operator has previously referred to 2024 as "a year of investment," which may indicate a larger commitment to online casinos, making its iGaming advancements significant.

"We’ve seen similar trends across the entire first month of the NFL season, suggesting BetMGM is investing heavily to capture online casino GGR share this fall,” noted EKG. “BetMGM casino app downloads meanwhile, are up by a very punchy +74% y/y, while FanDuel Casino and DraftKings Casino downloads are up by +24% and +25%, respectively.”

According to the research agency, BetMGM's share of the domestic online casino market dropped to 20%, or third place, in the second quarter prior to its revived iGaming drive. This decrease might have contributed to the renewed focus on the operator's online casino service.

“However, in the August 8-September 23 period, BetMGM Casino captured 32% download share among this group, up from 25% last year,” according to EKG.

Why BetMGM Cares About iGaming

Because of its potential for long-term growth, iGaming is essential for operators like BetMGM. Only seven states currently allow that type of gambling: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. However, as states look for new ways to make money, that number is predicted to rise in the years to come.

In particular, BetMGM may be able to differentiate itself from its competitors through iGaming, something it has found difficult to achieve in the online sports betting (OSB) market, where DraftKings and FanDuel essentially enjoy a duopoly.

“OSB is a more competitive space where BetMGM has been less of a standout. Casino has long been BetMGM’s stronger suit—our app testers consistently highly rank BetMGM Casino for its depth of content and features — so a harder pivot toward casino, amid BetMGM’s reinvestment year, would make sense,” concluded EKG.

In order to strengthen its iGaming presence, MGM has also acquired a number of bolt-on acquisitions, some of which appear to have the potential to be profitable in the long run.