It was a busy Monday for MGM Resorts International (MGM) as the company confirmed reports of a joint venture with GVC Holdings (as discussed in yesterday’s newsletter) and announced an “unprecedented” online gaming/sports betting partnership with Boyd Gaming (BYD). Combined the two companies will maintain brick and mortar casinos in 15 states, with both being able to offer online and mobile gaming in jurisdictions where either is licensed to operate; GVC technology will power their platforms. The market access agreement with BYD gives MGM the ability to “expand our entertainment options for guests (30 million life Rewards members) beyond their visits to our land-based resorts” (think: sports betting, iGaming, poker); Boyd picks up the “opportunity to potentially an add an online presence in 5 additional states.”
Howie Long-Short: This deal puts MGM and BYD on an even playing field with Penn National Gaming (PENN) and Caesars Entertainment Corp. (CZR), which operate in 15 and 13 states, respectively. Speaking of Caesars, the company announced it would introduce land-based sports betting in both NJ (begins Tues at The Bally’s, Wednesday and Harrah’s) and Mississippi (first to offer in MS) prior to the start of the football season. CZR sportsbooks are powered by Scientific Games (SGMS) technology.
As for BYD, the company reported Q2 earnings on July 26th. Revenues (+2% to $616.8 million) and EBITDA (+8% YoY to $163.4 million) grew across every sector of the business and “companywide operating margins reached record levels.” Shares rose +1.5% on Monday’s news, closing at $35.92
Fan Marino: Everything is turning up Aces for MGM (pun intended), as the Las Vegas WNBA team owned by MGM Resorts International has been awarded the 2019 WNBA All-Star Game.
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