Despite the COVID-19 pandemic, despite regulatory issues that differ from state to state, despite the ongoing fractured seasons of professional and college sports in the U.S., MGM Resorts International CEO Bill Hornbuckle is upbeat about the future of sports gambling.
“I think igaming, led by sports, is a $20 billion industry domestically here in the U.S.,” Hornbuckle said Wednesday during the discussion, “Betting on Sports” with ESPN’s David Purdum at the virtual Betting on Sports America conference. “Overall gaming is $55-60 billion in the U.S., give or take. You can see (sports gambling) will take a massive place both in the fundamentals of the business and ultimately the evolution of it.”
That evolution must first address numerous issues, ranging from problem gambling to enticing customers who gamble remotely to visit brick-and-mortar casinos. Hornbuckle, speaking from Mandalay Bay’s BetMGM Sportsbook in Las Vegas, said there are natural tie-in partnerships available for well-positioned operators.
“Literally a block away is the (Las Vegas) Raiders’ stadium, and outside the door to my left there will be a massive pre-game party,” Hornbuckle said. “The opportunity eight times a year to come to Las Vegas and enjoy an amazing experience around a Raiders’ game, whether you’re from Kansas City or Denver, is pretty spectacular not only for sports betting but for what it does for our industry and our space.”
Hornbuckle said fears about wagering from mobile devices may be overstated. During boom times in Las Vegas when new casinos opened, all parties eventually benefited. The same analogy works for mobile gaming and brick-and-mortar casinos.
“The idea that I could talk to you 365, make you hopefully understand our brand and our product by the device you have in your hand,” Hornbuckle said, “and earn some loyalty and an opportunity for you to come and motivate that trip, I feel really good about. I have no concerns.”
As sports gambling becomes available in more states – it’s currently taking place in 19 states and Washington D.C., with another six states expected to launch in 2021 – the way a customer places a bet is also expected to evolve. Real-time betting, in which bettors can gamble on prop bets such as whether a field goal will be good or if the next pitch is a strike, has enormous potential.
But before those prop bets can be offered, the latency issue – the delay between real-time action and when that action is broadcast – must be resolved.
“There are a million things that go into this, it’s complicated,” Hornbuckle said. “But to the extent that media companies realize that viewership is being had and made by this, there’s already a focus on how to improve it. The challenge today is that it doesn’t allow us to do anything instantly. But if you’re sitting at a tee box at a par three, you can make that bet. There’s a lot of propositions we can put into play.”
Hornbuckle also thinks the current landscape, with numerous providers vying for customers, will look radically different in a few years. Purdum noted the fight for “market share” is more aggressive than he expected.
“It’s a dogfight,” Hornbuckle said. “I view this much like the telecom industry. There’s going to be four or five real winners and a bunch of everybody else. … It’s going to take those who are strong of heart and deep wallets. It’s going to be several hundred million (dollars) in investment before we come to an environment where we think we’re making money and we’ve gained that market share. For now, it’s about capture. We’re all aggressively going at it, and with some vigor.”
