During a week when DraftKings ended its $22 billion pursuit of BetMGM’s joint-venture partner Entain, an MGM Resorts International executive told Nevada gaming regulators Thursday that the sports betting venture and casino gaming in general are in a good place as 2021 comes to a close.
MGM will report its earnings next Wednesday.
On Thursday, BetMGM announced it has launched a horse-racing mobile app in Ohio ahead of next weekend’s Breeders Cup. That came after DraftKings announced Tuesday it would not make a firm offer on Entain, the British gaming company that has a 50-50 partnership with BetMGM and supplies the technology.
MGM Resorts International CEO Bill Hornbuckle had been downplaying speculation his company would be harmed by a takeover of Entain. Under the terms of its deal with Entain, DraftKings couldn’t operate in the U.S without MGM’s approval, he said.
During a routine matter before the Commission, Pat Madamba, senior vice president and legal counsel, gave the state regulators a positive outlook for the gaming industry. He also provided a rundown of BetMGM’s progress, its marketing relationships, and the integration with its M life rewards program.
MGM also announced in September that it’s acquiring the operations of the Cosmopolitan of Las Vegas.
“Business is very good and given all of the hardships with COVID, it’s nice to see that we’re getting back to normal,” Madamba said. “People are coming back to our facilities here in Las Vegas and across the country. That’s also happening for our competitors.”
Madamba said MGM has rehired many of its laid-off employees, but said there continue to be thousands of openings at MGM properties nationwide and opportunities that remain unfilled. “We’re actively attempting to engage with the population as a whole and bring them into the MGM family,” Madamba said. “If somebody wants a job, there’s an opportunity at MGM.”
Madamba talked about the relationships that BetMGM has built with various sports teams and celebrities. Former NBA player Kevin Garnett joined as a brand ambassador last week.
Madamba noted that BetMGM will have its first sportsbook opening in a partnership with the Washington Nationals, possibly in November. That will expand both the MGM and BetMGM brands, he told the Commission.
“There are multiple opportunities,” Madamba said. “It’s really synergistic between MGM and BetMGM in terms of growth of both of our businesses.”
Madamba said the integration of BetMGM and M life has been done in steps, as it draws in customers from both the sports betting and casino sides.
“If you become a BetMGM member, you also become a M life member and we exchange certain information,” Madamba said. “We’re moving to the point where a BetMGM customer’s promotional credits will be seamless in using them at the MGM properties. It’s a further integration of the digital side of the business, of which we own half (with Entain), into MGM’s brick-and-mortar business across the country.”
Sean McGuinness, MGM’s gaming attorney with the firm Butler Snow, said the purpose of Thursday’s hearing was to deal with a wholly owned subsidiary of the public company — a Nevada corporation in the Mandalay Resort Group — and convert it with the Secretary of State to become a limited liability company.
“It’s just changing the form of the entity,” McGuinness said. “Because it’s a registered holding company, we have to get permission from the (Nevada Control Board) and Commission to do it.”
